The Rate at Which a Consumer Is Willing to Purchase

question 11

Multiple Choice

The rate at which a consumer is willing to purchase one good instead of another is called

• A) the maximization rate.
• B) opportunity cost.
• C) the total rate of substitution.
• D) the marginal rate of substitution.
• E) the budget constraint.

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Definitions:

Eurobonds

International bonds issued in a currency not native to the country where it is issued, allowing companies to raise capital in a foreign currency.

Bearer Form

A method of issuing securities whereby the certificate does not record the owner's name, making possession of the physical certificate equivalent to ownership of the security.

Income Taxes

Taxes imposed by the government directly on income, both earned (salaries, wages, commissions) and unearned (interest, dividends).

Indirect Quote

A foreign exchange rate quotation that specifies the foreign currency amount that can be purchased with one unit of the domestic currency.