The government will conduct expansionary fiscal policy if it attempts to
A. reduce real GDP.
B. reduce the price level.
C. shift the aggregate demand curve to the left.
D. reduce the level of unemployment.
Answer: D
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In the above figure, if the price of pizza falls, the budget line
A) rotates outward and becomes steeper. B) shifts leftward and its slope does not change. C) shifts rightward and its slope does not change. D) rotates inward and becomes flatter.
Suppose a consumer purchases pizza and soft drinks. If pizza is measured on the vertical axis and soft drinks are measured on the horizontal axis, then the slope of the budget line is equal to:
A. the price of pizza divided by the price of soft drinks. B. the price of soft drinks divided by the price of pizza. C. the price of pizza divided by the price of soft drinks times negative one. D. the price of soft drinks divided by the price of pizza times negative one.
Which of the following is NOT a reason why economists usually work with mathematical models?
A. Because most economic choices are quantitative in nature. B. Mathematical models can provide precision, while quantitative models cannot. C. Mathematical modeling imposes intellectual rigor. D. Mathematical models can be used to settle disputes over normative economic questions.
Refer to the information. The per-unit cost of production in this economy is:
Answer the question on the basis of the following information. An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labor to produce its total output of 640 units. Each unit of capital costs $10; each unit of raw materials, $4; and each unit of labor, $3. A. $0.05. B. $0.10. C. $0.50. D. $1.00.