Suppose that the local health board discovers some unsanitary conditions at your favorite sushi restaurant. An economist would likely have what to say about this situation?

A) "All unsanitary conditions at this restaurant must be eliminated."
B) "The restaurant owner obviously cares more about profits than about his customers."
C) "No one should eat at this restaurant due to the potential health hazard."
D) "Eliminating all of the unsanitary conditions might cost more than the value of the benefits that would be gained."

D

Economics

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The marginal rate of technical substitution (MRTS) along an isoquant:

A) is equal to the price ratio at all points along an isoquant. B) is equal to the ratio of the marginal utilities of the two goods. C) is equal to the ratio of the marginal products of the two inputs. D) remains constant as we alter the combinations of the two inputs.

Economics

Refer to Figure 14.1. Other things equal, an increase in the inflation rate is best represented as a movement from

A) point A to point B. B) point C to point A. C) point C to point B. D) point B to point C.

Economics