Waldo buys only two items, pretzels and ham sandwiches. Waldo has $24 in income, pretzels cost $0.60 per bag and ham sandwiches cost $2.40 each
If Waldo's budget line is constructed with ham sandwiches along the horizontal axis and bags of pretzels along the vertical axis, then A) the horizontal intercept of the budget line will be 40 ham sandwiches.
B) the vertical intercept of the budget line will be 10 bags of pretzels.
C) the slope of the budget line will be -4 bags of pretzels per ham sandwich.
D) All of the above answers are correct.
C
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If you pay $400 in taxes when you earn $10,000 and $600 in taxes when you earn $12,000, you are subject to a marginal tax rate of
A) 4%. B) 5%. C) 6%. D) 8%. E) 10%.
If a small change in output results in a large change in marginal cost, the marginal cost curve is ________, which makes accurate forecasts ________ valuable.
A) flat; more B) steep; less C) flat; less D) steep; more
An increase in the price of steel to producers of refrigerators will cause
A) the quantity demanded for steel to increase. B) the demand for refrigerators to decrease. C) the quantity supplied of refrigerators to increase. D) the supply curve for refrigerators to shift left.
The money demand curve is
a. downward sloping b. upward sloping c. horizontal d. vertical e. has an inverted V-shape.