The study of how a particular firm might choose to maximize its profits would fall into what type of analysis?

Refer to Figure 10-8. If the price of biscotti is $1.50 and the price of a cappuccino is $3.00, what is the slope of the budget constraint?

A) -(3.00 - 1.50 )/(3.00 + 1.50 ) = -1/3 B) -2 C) -1/2 D) The slope cannot be determined without the value of income.

Economists believe that trade is necessary for prosperity because

a. every country lacks some vital resources that it can get only by trade. b. each country's climate makes it a relatively efficient producer of some goods, and an inefficient producer of other goods. c. specialization permits large outputs and can produce economies of scale. d. All of the above are correct.