Refer to Figure 10-4. What is the marginal rate of substitution for one bar of chocolate between h and j?

A) of a cookie. B) of a cookie. C) 2 cookies. D) 4 cookies.

B

Economics

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The reason the short-run macro model suggests that the economy can operate either above or below its potential while in the long-run classical model the economy operates automatically at full employment is that

a. the short-run macro model is flawed and inaccurate b. the classical model is flawed and inaccurate c. the two models measure completely different aspects of the economy d. in the short run, spending affects output, but not in the long run e. in the short run the role of government in helping the economy return to equilibrium is not considered

Economics

Suppose Alyssa likes oranges twice as much as apples, no matter how many apples or oranges she has. Her indifference curves for oranges and apples a. are right angles

b. are straight lines. c. slope upward. d. cross one another at certain points.

Economics