The shift of the budget line from cd to ab in the above figure is consistent with:
A) decreases in the prices of both M and N .
B) an increase in the price of M and a decrease in the price of N .
C) a decrease in money income.
D) an increase in money income.
Answer: C) a decrease in money income.
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The St. Louis Federal Reserve Bank econometric model indicates that crowding out
A) is only partial. B) never occurs. C) occurs only in highly unusual circumstances. D) is complete.
Demand is a schedule of
A) how much of a good a person wants. B) how much of a good people will purchase at each different possible price. C) how much of a good people will purchase at each income level. D) each possible price and the amount people will buy when their incomes change.
The three main sources of barriers to entry are monopoly resources, government regulation, and the firm's production process
a. True b. False Indicate whether the statement is true or false
Consider the accompanying payoff matrix.
If both firms offer reduced rates, each earns ________, and if both firms keep their rates high, each earns ________.
A. 500; 300 B. 300; 50 C. 50; 300 D. 300; 500