A consumer's budget constraint is drawn with the quantity of pizza measured along the horizontal axis and the price of Pepsi measured along the vertical axis. If the market is offering the consumer the trade-off of 3 pints of Pepsi for 1 pizza, then what is the slope of the consumer's budget constraint?
A pizza costs three times as much as a pint of Pepsi, so the slope of the budget constraint is 3 (or, technically, -3).
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Which of the following bonds will have the highest yield-to-maturity if all three bonds appear identical to investors in terms of risk, liquidity, information costs, tax treatment?
A) one with a coupon of $50 B) one with a coupon of $100 C) one with a coupon of $200 D) none of the above
Two goods are complements if:
A. an increase in the price of one good leads to an increase in demand for the other. B. there are no substitutes for either of them. C. people tend to consume either one or the other. D. an increase in the price of one good leads to a decrease in demand for the other.
If the marginal product of labor is always positive, and total revenue grows with each additional worker. Firms do not continuously hire new workers because:
A. there isn't enough room in the factory. B. there isn't an infinite number of workers. C. wages would have to increase. D. they stop when MRP = wage
The Dutch Disease refers to a situation in which new production of a natural resource results in deindustrialization.
Answer the following statement true (T) or false (F)