Figure 5-6
A shift in the budget line in Figure 5-6 from AB to AC indicates
A. the price of wine coolers has risen.
B. income has increased.
C. the price of beer has fallen.
D. the price of wine coolers has fallen.
E. All of the responses are correct.
Answer: D
You might also like to view...
Suppose that the inflation rate has been 3 percent per year for several years, and the unemployment rate has been stable at 5 percent. Unanticipated changes in government policy cause the inflation rate to increase to 6 percent
In the short run, we would expect the unemployment rate to A) increase, but the exact amount cannot be known for sure. B) decrease. C) increase to 10 percent. D) remain constant.
Government transfer payments are a good example of an automatic stabilizer
a. True b. False Indicate whether the statement is true or false
The sum of the marginal utilities of a good, at any consumption level
a. cannot be measured b. adds up to total utility c. adds up to maximum utility d. is negative because of the law of diminishing marginal utility e. is zero because marginal utility eventually becomes negative, canceling the positive values of marginal utility
If the price of housing (which accounts for 40 percent of total expenditures in the CPI basket), rises by 10 percent in one year while the prices of all other goods rises by 27 percent, by how much will the CPI rise?
A. 234 percent B. 10 percent C. 27 percent D. 20 percent