The rate of time preference is positive
a. only when interest rates are positive
b. because interest rates are positive
c. only when people save
d. because people save
e. because people prefer goods now to the same goods later
E
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The slope of an indifference curve is ____ and a movement along the curve causes the loss in marginal utility (MU) of one good to ____ the marginal utility (MU) gained from another good
a. zero; maximize b. positive; exceed c. concave; reduce d. negative; equal
Equilibrium in a perfectly competitive market results in the greatest amount of economic surplus, or total benefit to society, from the production of a good. Why, then, did Joseph Schumpeter argue that an economy may benefit more from firms that have
market power than from firms that are perfectly competitive? What will be an ideal response?