Question

SECTION II: Choose the best answer from the given alternative. (1 points each). 1. The slope of an indifference curve; A. Is calculated by dividing the price good on vertical axis by the price of good on horizontal axis B. Is calculated by dividing the quantity of good on vertical axis by the quantity of good on horizontal axis C. Measure the marginal rate of substitution between the two good in question D. MRSxy is the number of unity of "X" the consumer is willing to scarify to obtain one extra unity of "Y" E. C and D are correct 2. Suppose the country of Ethiopia experienced a decrease in a Real GDP and people were laid from their jobs. The people would considered part of A. Frictional unemployment B. structural unemployment D. cyclical unemployment E. disguised employed ​

Answer 1

1. The slope of an indifference curve measures the marginal rate of substitution between the two goods in question. Therefore, the correct answer is C. Measure the marginal rate of substitution between the two goods in question.

2. If the country of Ethiopia experienced a decrease in Real GDP and people were laid off from their jobs, it would be considered part of cyclical unemployment. Therefore, the correct answer is D. Cyclical unemployment.