In a two-good economy,competitive equilibrium is
A) minus the slope of the tangent to the PPF.
B) anywhere where the PPF is concave.
C) where the marginal rate of substitution equals the marginal rate of transformation.
D) minus the slope of the indifference curve.
E) where the inflation rate and aggregate output are equal.
Correct Answer:
Verified
Q13: The steeper the PPF,
A) the more of
Q14: Which of the following pairs of terms
Q15: In an open,two-good economy in a two-good
Q16: A current account surplus is defined as
A)
Q17: Small open economy models are used to
Q19: The net effect on welfare from eliminating
Q20: Comparative advantage is determined by the
A) slope
Q21: For Canada,the net effect in the terms
Q22: In a two-good,two-period model,holding everything else constant,an
Q23: The terms of trade move against a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents