The slope of the budget line
a. is always -1
b. represents the opportunity cost of consuming one more unit of the good measured on the horizontal axis
c. increases as more of one good is consumed
d. decreases as more of one good is consumed
e. is negative because of the law of demand
B
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Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above. Between 2012 and 2013, which grew more rapidly, nominal GDP or real GDP?
A) Real GDP grew more rapidly. B) Both grew at the same rate. C) Nominal GDP grew more rapidly. D) Because real GDP and nominal GDP use different prices, it is not possible to determine which grew most rapidly. E) More information is needed to determine which grew more rapidly.
Unemployment that is of a short duration to allow a person time to find a new job is
For a competitive firm,
a. total revenue equals average revenue. b. total revenue equals marginal revenue. c. total cost equals marginal revenue. d. average revenue equals marginal revenue.
The lowest sustainable rate of unemployment that policy makers believe is achievable under existing conditions is:
A. called the optimal rate of unemployment. B. called the target rate of unemployment. C. called cyclical unemployment. D. zero.