Land used to grow corn could also be used to grow soybeans. Which of the following is true when the farmer plants soybeans and the market price of corn rises?
a. The opportunity cost of producing soybeans decreases.
b. The opportunity cost of producing soybeans increases.
c. There will be no change in the opportunity cost of producing soybeans.
d. The opportunity cost of producing corn increases.
B
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Perishable goods such as tomatoes and milk are never used as a form of money, primarily because they cannot function as:
a. a store of purchasing power. b. a means of payment. c. a standard of deferred payment. d. a medium of exchange. e. a unit of account.
Vicki consumes meatloaf and pizza. To keep her utility constant, you must give her more of one good if you take some of the other away. This information implies that
a. Vicki's marginal rate of substitution must be constant along her indifference curve. b. Vicki's indifference curve must have a negative slope. c. the prices Vicki must pay for meatloaf and pizza are always the same. d. Vicki's marginal utility from each good must be constant along her indifference curve.