The slope of an indifference curve at all points reflects
A. the terms by which the consumer can trade off goods in the market.
B. the relative prices of the two goods.
C. the willingness of the consumer to trade one good for another.
D. consumer income relative to the price of a good.
E. the relative price ratio of the two goods.
Answer: C
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Which of the following statistics confirm the rise in de-integration in the U.S. post 1970s?
a. The average number of industrial sectors a firm operated in increased substantially in 1997. b. Employment in the business services industry that supplied contract employees grew by almost five times as much as non-farm employment. c. Between 1977 and 1999, imports of the U.S. firms from foreign affiliates as a percentage of total imports increased substantially. d. Between 1977 and 1999, imports of the U.S. firms from unrelated suppliers as a percentage of total imports declined.
Cashews and asparagus are normal goods. When the price of asparagus falls, the substitution effect by itself causes
a. the consumer to feel richer, so the consumer buys more cashews. b. the consumer to feel richer, so the consumer buys less cashews. c. cashews to be relatively more expensive, so the consumer buys less cashews. d. cashews to be relatively less expensive, so the consumer buys more cashews.