Along an indifference curve
A) the marginal rate of substitution is constant but not equal to zero.
B) the consumer does not prefer one consumption point to another.
C) the marginal rate of substitution is equal to 0.
D) the consumer prefers some of the consumption points to others.
B
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What is the underground economy?
(A) Costs of such things as personal safety, vacations, and sick pay. (B) The goods and services people make or do themselves. (C) The amount spent for environmental cleanup and similar products. (D) Products and income that are not reported as income to the government.
A new toll road was built in Southern California between San Juan Capistrano and Costa Mesa. On average, drivers save 10 minutes taking this road as opposed to the old road. The toll is $2; the fine for not paying the toll is $76
The probability of catching and fining someone who does not pay the toll is 90%. Individuals who take the road and pay the toll must therefore value 10 minutes at a minimum A) between $1.80 and $68.40. B) between $2 and $68.40. C) $1.80. D) between $1.80 and $76. E) more than $76.