Competition results in the efficient product mix because
A) producers are setting MRT equal to minus the price ratio while consumers are setting MRS equal to minus the price ratio ensuring that MRT will equal MRS.
B) consumers are on the contract curve.
C) the slope of the production possibility frontier will equal the slope of the contract curve.
D) the distribution of the final output is Pareto efficient.
A
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According to UIP, when domestic and foreign interest rates are equal, the exchange rare of the home currency is expected to
a) fall b) remain contact c) rise d) not enough information is provided
Rank the following goods from least to most elastic: high octane unleaded gasoline, unleaded gasoline, gasoline
A) High octane unleaded gasoline, unleaded gasoline, gasoline B) High octane unleaded gasoline, gasoline, unleaded gasoline C) Unleaded gasoline, high octane unleaded gasoline, gasoline D) Gasoline, unleaded gasoline, high octane unleaded gasoline E) None of the above.