A point or product-combination to the left of and inside a budget line:
A. Is attainable, but a combination or point to the right of the line is unattainable
B. Is unattainable, but a combination or point to the right of the line is attainable
C. Costs more than a combination or point on the budget line
D. Costs more than a combination or point outside the budget line
Answer: A
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Which of the following is not a characteristic of the monopolistic competition market structure?
a. Many sellers, each small in size relative to the overall market. b. Few sellers. c. Differentiated product. d. Easy, low-cost entry and exit.
Most modern monetarists believe that
A. the capitalist system is inherently unstable and unpredictable. B. structural economic changes are major causes of business cycles. C. inflation is explained by too rapid a rate of growth of the nominal money supply, resulting in "too much money chasing too few goods." D. deflations are caused by contagious pessimism among investors.
A government agricultural policy that restricts output by limiting the number of farm acres that can be used to produce a particular crop is the
A) marketing quota system. B) acreage allotment program. C) price support program. D) target price system. E) paying farmers not to produce system.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.