Consider two goods: peanuts and crackers. The slope of the consumer's budget constraint is measured by the
a. consumer's income divided by the price of crackers.
b. relative price of peanuts and crackers.
c. consumer's marginal rate of substitution.
d. number of peanuts purchased divided by the number of crackers purchased.
b
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Which of the following is a long-run adjustment?
a. A new economics professor is hired on campus. b. General Motors increases its orders for steel. c. Microsoft cuts back its hiring of new graduates. d. Glow Electric disassembles one of its nuclear power plants. e. Texaco buys more crude oil to refine into gasoline.
When a country adds more capital to its existing stock:
A. the additional productivity is less than the previous increases to productivity. B. the additional productivity is more than the previous increases to productivity. C. it experiences rapidly increasing rates of growth. D. it experiences rapid declines in its level of income.