As we move down a particular indifference curve, if the "marginal rate of substitution" between the two goods does not change we can conclude that the two goods are:
A) perfect substitutes.
B) perfect complements.
C) totally unrelated.
D) both inferior goods.
A
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An assumption of the neoclassical theory of growth is that
A) people receive only subsistence real GDP per person. B) all technological advances are the result of chance. C) the marginal product of all types of capital increases as more capital is accumulated. D) knowledge has diminishing returns.
If the production of a good causes pollution (an external cost) is the unregulated competitive market equilibrium of that product efficient?
What will be an ideal response?
By focusing the customers on the price of a product, you make
a. The demand for the product more inelastic b. The customers less price sensitive to the product c. The demand for the product more elastic d. Only B&C
Managers undertake an investment only if
a. Marginal benefits of the investment are greater than zero b. Marginal costs of the investment are less than marginal benefits of the investment c. Marginal benefits are greater than marginal costs d. Investment decisions do not depend on marginal analysis