The budget constraint shown below is consistent with a pricing strategy that involves a 
A. price increase of X for large quantities.
B. price reduction of X for large quantities purchased.
C. constant price of X for all quantities purchased.
D. price change of X and a nominal income increase for the consumer.
Answer: A
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Entitlement spending is included in discretionary spending for the U.S. government
Indicate whether the statement is true or false
Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit. This month, the company supplied the same quantity of binders at $4 per unit. Based on this evidence, Tecumseh has experienced
A) an increase in supply. B) a decrease in the quantity supplied. C) an increase in the quantity supplied. D) a decrease in supply.
After graduating from college, it takes Kim several months to find a professional job. This is an example of which type of unemployment?
A. Structural unemployment B. Seasonal unemployment C. Cyclical unemployment D. Frictional unemployment
The market mechanism:
A. Works through central planning by the government. B. Eliminates market failures created by the government. C. Uses prices as a means of communication between consumers and producers. D. Is very inefficient since consumers cannot communicate directly with producers.