The consumption function shifts upward when
A) real income increases.
B) saving increases.
C) the real wealth of the average household increases.
D) population decreases.
C
Economics
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Refer to Figure 11-18. A curve that connects points A, D, and E is called
A) a total cost line. B) an expansion path. C) an indifference line. D) an input-output curve.
Economics
If the utility function (U) between bananas (B) and jam (J) can be represented as U(B,J) = 3ln(B)+4ln(J), what is the marginal rate of substitution (MRS) between bananas and jam?
A) 4B. B) -3J/(4B). C) 4/(3J). D) 3B/J.
Economics