Joe's income is $500, the price of food (F) is $2 per unit, and the price of shelter (S) is $100. Which of the following represents his marginal rate of transformation of food for shelter?
A) -5
B) -50
C) -.02
D) None of the above
B
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The relative price of a magazine in the above figure is
A) 0.5 of a hamburger per magazine. B) 1 hamburger per magazine. C) 1.33 hamburgers per magazine. D) 8 hamburgers per magazine.
Which of the following is most closely associated with positive economics?
a. determining the impact of government spending on the actual level of total employment b. determining the best level of immigration into the country c. determining whether too many luxury goods are being produced d. determining whether the government should reduce poverty e. determining whether the government should alter income taxes in order to increase total employment
The Ponderosa Bank receives a new deposit of $2,500. The reserves requirement is 20 percent. How much can this bank loan out as a result of this deposit?
A. $25,000 B. $12,500 C. $3,125 D. $2,000 E. $500
Which of the following was not one of the likely causes of the productivity problem in the 1970s?
A. reduced research and development spending B. a slowdown in investment spending C. low saving rates D. a reduction in government regulation