“It is in the nature of all economic problems that absolute solutions are denied us.”
Please provide the best answer for the statement.
The key to the explanation is that solutions to economic problems involve choices among alternatives. The nature of economic problems involves scarcity of resources relative to our wants. Therefore, there is always an opportunity cost in making the “best choice.” That is, another solution is forgone.
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If the relative price of S were to rise, then an individual's indifference curve would rotate toward the T axis
Indicate whether the statement is true or false
An increase in the tax rate on interest income
a. raises the amount earned on savings. Saving will rise if the income effect of the increase in the tax rate is larger than the substitution effect. b. raises the amount earned on savings. Saving will rise if the income effect of the increase in the tax rate is smaller than the substitution effect. c. reduces the amount earned on savings. Saving will fall if the income effect of the increase in the tax rate is larger than the substitution effect. d. reduces the amount earned on savings. Saving will fall if the income effect of the increase in the tax rate is smaller than the substitution effect.