One reason more sport utility vehicles （SUVs） are driven in the United States than in Europe is（）
A. different marginal rates of substitution
B. different marginal rates of transformation
C. the United States hasn’t had a recession since 2000-2001
D. Either A or B
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Data shows that United States college students purchase more e-books than German college students. Assuming that all students have identical preferences for e-books and textbooks, what is the likely e
A. Taxes on textbooks are higher in the United States than taxes on textbooks in Germany
B. Taxes on textbooks are lower in the United States than taxes on textbooks in Germany
C. The price of textbooks is cheaper in the United States than textbooks in Germany
D. Both A and C
Returns to scale refers to the change in output when（）
A. all inputs increase proportionately
B. labor increases holding all other inputs fixed
C. capital equipment is doubled
D. specialization improves
If both prices decreases by 50%（）
A. budget constraint will be unchanged
B. slope of the budget constraint will increase
C. slope of the budget constraint will decrease
D. budget constraint will shift outward in a parallel fashion
When the price of a good changes, the substitution effect can be found by comparing the equilibrium quantities purchased（）
A. on the old budget line and the new budget line
B. on the original indifference curve when faced with the original prices and when faced with the new prices
C. on the new budget line and a hypothetical budget line that is a shift back to the original indifference curve parallel to the new budget line
D. on the new indifference curve
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