The magnitude of the slope of an indifference curve is:
A) called the marginal rate of substitution.
B) equal to the ratio of the total utility of the goods.
C) always equal to the ratio of the prices of the goods.
D) all of the above
E) A and C only
A
Economics
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A drawback in using the payback approach to capital budgeting decisions is
A) it doesn't account for the time value of money. B) it ignores cash flows beyond the payback period. C) it doesn't adjust for differences in the stream of cash flows. D) All of the above
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Which of the following components of spending is not treated as a given value in the short-run macro model?
a. Net exports b. Imports c. Investment spending d. Consumption spending e. Government spending
Economics