Author Question: The magnitude of the slope of the budget line A) is defined as marginal rate of substitution. B) ... (Read 79 times)

dollx · **on:** Jun 29, 2018

The magnitude of the slope of the budget line

A) is defined as marginal rate of substitution.
B) equals the relative price of the good measured along the horizontal axis.
C) increases when income increases.
D) decreases when income increases.

Question 2

A key contribution of Ronald Coase is that he pointed out that private transactions are efficient when the number of parties involved is small

A) and when property rights are well defined and transactions costs are low.
B) and when property rights do not exist.
C) and that property rights are irrelevant to the existence of externalities.
D) and when corporations are not greedy.