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Cher's marginal rate of substitution of necklaces (N) for earrings (E) is 5 (MRSEN = 5).
This information implies that:
A. Cher should own 5 times as many necklaces as pairs of earrings.
B. Cher will move to a higher indifference curve if she trades away 5 necklaces for one more pair of earrings.
C. the slope of the indifference curve is 5 and thus upward sloping.
D. Cher is willing to trade away 5 necklaces for one more pair of earrings, holding her utility constant.
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FDA assures that pregnant women are enrolled in investigational drug trials before a product is used when there is substantial use in women. FDA has the authority to stop the distribution of an approved drug until studies are done in pregnant women.
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Explain what happens to supply, price, and quantity when the following condition occur:
The one year interest rate over the next five years is expected to be 7%, 8%, 9%,10% and 11%. Investors preferences for holding short term bonds have the liquidity premiums for one year to five year bonds as 0%, 0.25%, 0.5%, 0.75%, and 1%, respective..
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Which of the following would be included in GDP?
Taco Bell firm raises the price of its tacos. The price elasticity of demand for Taco Bell tacos equals 5.0. What happens to the Taco Bell's total revenue? Which of the following statements is correct for the price elasticity of demand along a linear..
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