If income increases, the budget line:
A. rotates counterclockwise.
B. shifts to the right.
C. rotates clockwise.
D. shifts to the left.
Answer: B
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Consumption spending includes spending on:
A. durables, nondurables, and services. B. goods and services by federal, state, and local governments. C. capital goods, residential housing, and changes in inventories. D. stocks, bonds, and other financial instruments.
In the figure above, at the point where the price is $50 per bunch, the price elasticity of supply is
A) 2.14. B) 0.47. C) 1. D) 3. E) 0.33.
If Angelo's Pizza Restaurant has a constant marginal cost of $100 for each additional table in the restaurant and a constant marginal cost of $40 for operating each additional table, what is Angelo's long-run marginal cost per table?
A) $100 B) $60 C) $40 D) $140
Which of the following is a service?
a. anything that is scarce and that satisfies unlimited human wants b. a thing for which people pay money c. an intangible activity that satisfies human wants d. any output produced by a service-sector industry, such as fast food e. something less desirable than a good