Jason had $30 to spend on games and books. A game costs $5, while a book costs $3 . If he decides to purchase 5 games and 4 books, his consumption bundle lies _____
a. above his budget line
b. below his budget line
c. at the intersection of his indifference curve and his budget line
d. at the point where his indifference curve is tangent to his budget line
a
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The introduction of a new technology that increases the productivity of labor will:
A. decrease the demand for labor B. increase the demand for labor. C. decrease the supply of labor. D. increase the supply of labor.
The marginal propensity to consume (MPC) in exhibit 10-2 equals
What will be an ideal response?
Economists believe that the CPI overstates actual price changes by as much as ________ to ________ percent each year.
A. 1; 2 B. 2; 3 C. 0.5; 1 D. 0.5; 1.5
Izzy Amador is a highly talented tattoo artist. She has chosen to specialize in tattoo art because of all of the following except
A) her tattoos are highly esteemed by tattoo lovers who are willing to pay very high prices. B) for her, this is the most lucrative way to purchase the products that she wants to consume. C) her opportunity cost of pursuing another career is very low. D) she obviously has a comparative advantage in tattoo art.