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What is your marginal rate of substitution of 1 bills for 5 bills?
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If good 1 is a neutral' what is its marginal rate of substitution for good 2?
Answer is 0. Solution: MRS=delta(x2)/delta(x1) Good 1 is neutral it means that little change in delta(x2) makes infinity change in delta(x1). It means delta(x1)= infinity => MRS=0
What is the difference between marginal rate of substitution and marginal rate of technical substitution?
marginal rate of substitution is the slope of the indifference curve. It is the rate at which the consumer is willing to give up certain units of a good in order to get an additional unit of another good. it is equal to the ration of the Marginal Utilities of the 2 goods. marginal rate of transformation is the slope of the production possibiltiy frontier. it is the rate at which the producer is willing to give up the production of certain units of a good in order to increase the prpduction of the other good by 1 unit ( by shifting the inputs more towards the production of the last good). it is equal to the ratio of the marginal costs of the 2 goods.
Can marginal rate of substitution may increase or decrease in absolute value as one moves southeast along an indifference curve depending upon whether the substitution or income effect is dominant?
Indifference curves are downward sloping (negative slope) - therefore they are flatter towards the south east. the marginal rate of substitution is defined as the amount of good y (along the y axis) that is necessary to substitute for 1 good x (along the x axis) so that the effective bundle (or utility) remains the same. In effect the MRS is the slope of the indifference curve at a particular point. Therefore, MRS decreases as you move southeast along an indifference curve.
What is marginal cost funding means?
Marginal Cost funding is the difference in balances when changing a funding rate. An example would be: A. I have 1 Million dollars at 3% and want to change my funding rate to 2%. When I do this I should expect some rate sensitive money to leave due to the lower rate. Let's say that 50% of the money leaves and now there is 500k at 2%. The marginal cost is the difference between these two options. It could be an added cost or as in this example a marginal effect that is a cost savings, but also a lost funding balance of 500k.
What 4 factors have an effect on the marginal efficiency of capital?
1. Demand of commodities 2. cost of production 3. Foreign trade 4.Rate of population growth
If good 1 is a neutral' what is its marginal rate of substitution for good 2?
Answer is 0. Solution: MRS=delta(x2)/delta(x1) Good 1 is neutral it means that little change in delta(x2) makes infinity change in delta(x1). It means delta(x1)= infinity => MRS=0
What is the difference between marginal rate of substitution and marginal rate of technical substitution?
marginal rate of substitution is the slope of the indifference curve. It is the rate at which the consumer is willing to give up certain units of a good in order to get an additional unit of another good. it is equal to the ration of the Marginal Utilities of the 2 goods. marginal rate of transformation is the slope of the production possibiltiy frontier. it is the rate at which the producer is willing to give up the production of certain units of a good in order to increase the prpduction of the other good by 1 unit ( by shifting the inputs more towards the production of the last good). it is equal to the ratio of the marginal costs of the 2 goods.
Can marginal rate of substitution may increase or decrease in absolute value as one moves southeast along an indifference curve depending upon whether the substitution or income effect is dominant?
Indifference curves are downward sloping (negative slope) - therefore they are flatter towards the south east. the marginal rate of substitution is defined as the amount of good y (along the y axis) that is necessary to substitute for 1 good x (along the x axis) so that the effective bundle (or utility) remains the same. In effect the MRS is the slope of the indifference curve at a particular point. Therefore, MRS decreases as you move southeast along an indifference curve.
What is the influence of 1 percent increase in the Repo rate?
Marginal Standing Facility
How can you derive the tax rate multiplier?
Taxation Multiplier = - (MPC) / (1 - MPS) Where, MPC = marginal propensity to consume, and MPS = marginal propensity to save.
Why ppc slopes downward?
Ppc slopes downward due to the following reasons: 1. Substitution effect. 2. Income effect. 3. Diminishing marginal utility.
What is marginal and average tax rate of 10 percent on income between 0 and 8025?
1 in a million
What is marginal cost funding means?
Marginal Cost funding is the difference in balances when changing a funding rate. An example would be: A. I have 1 Million dollars at 3% and want to change my funding rate to 2%. When I do this I should expect some rate sensitive money to leave due to the lower rate. Let's say that 50% of the money leaves and now there is 500k at 2%. The marginal cost is the difference between these two options. It could be an added cost or as in this example a marginal effect that is a cost savings, but also a lost funding balance of 500k.
What 4 factors have an effect on the marginal efficiency of capital?
1. Demand of commodities 2. cost of production 3. Foreign trade 4.Rate of population growth
How many ways can you make twenty dollars with bills?
20 $1 bills 18 $1 bills and 1 $2 bill 16 $1 bills and 2 $2 bills 14 $1 bills and 3 $2 bills 12 $1 bills and 4 $2 bills 10 $1 bills and 5 $2 bills 8 $1 bills and 6 $2 bills 6 $1 bills and 7 $2 bills 4 $1 bills and 8 $2 bills 2 $1 bills and 9 $2 bills 10 $2 bills and so on and so forth appropriately as needed utilizing $5, $10, and $20 bills along with $1 and $2 bills
What is SNi reaction?
The question is probably intended to be about SN1 reaction. See the following from Wikipedia, accessed Feb. 25, 2013: "The SN1 reaction is a substitution reaction in organic chemistry. "SN" stands for nucleophilic substitution and the "1" represents the fact that the rate-determining step is unimolecular".
What formula is used for the multiplier in an open economy?
1/1-(mpc-mpm) mpc- marginal propensity to consume mpm- marginal propensity to import
