Refer to Figure 3-1. If the product represented is an inferior good, a decrease in income would be represented by a movement from

The rate of return that households expect on their savings is determined by:

A) exchange rates. B) interest rates. C) government expenditure. D) tax rates.

The following is true about point A for a firm with the I1 isocost curve.  

A. Labor has a lower marginal product than capital. B. The firm is minimizing the costs of production. C. Capital is relatively more expensive than labor. D. All of the choices are true.