(A) Price elasticity of demand
(B) Income elasticity of demand
(C) Cross price elasticity of demand
(D) Supply price elasticity
The cross elasticity of demand of complements goods is:
(A) Less than 0.
(B) Equal to 0.
(C) Greater than 0.
(D) Between 0 and 1.
The rate at which one input can be reduced per additional unit of the other input, while holding output constant, is measured by the:
(A) Marginal rate of substitution.
(B) Marginal rate of technical substitution.
(C) Slope of the isocost curve.
(D) Average product of the input.
The short run is:
(A) Less than a year.
(B) Three years.
(C) However long it takes to produce the planned output.
(D) A time period in which at least one input is fixed.
A function that indicates the maximum output per unit of time that a firm can produce, for every combination of inputs with a given technology, is called:
(A) An isoquant.
(B) A production possibility curve.
(C) A production function.
(D) An isocost function.
An individual with a constant marginal utility of income will be?
(A) Risk averse.
(B) Risk neutral.
(C) Risk loving.
(D) Insufficient information for a decision.
Which of the following is true regarding income along a price consumption curve?
(A) Income is decreasing.
(B) Income is decreasing.
(C) Income is constant.
(D) The level of income depends on the level of utility.
An individual consumes only two goods, X and Y. Which of the following expressions represents the utility maximizing market basket?
(A) MRSxy is at a maximum.
(B) Px/Py = money income.
(C) MRSxy = money income.
(D) MRSxy = Px/Py.