Refer to the graph below. The shift of the budget line from AB to CD is consistent with:
A. A decrease in money income
B. A decrease in the prices of both Goods 1 and 2
C. An increase in the prices of both Goods 1 and 2
D. A decrease in the price of Good 1, and an increase in the price of Good 2
B. A decrease in the prices of both Goods 1 and 2
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Four people each have a different willingness to pay for one unit of a good: George will pay $15, Glen will pay $12, Tom will pay $10, and Peter will pay $8. If price decreases from $9 to $8 then the consumer surplus from this unit will increase by
A) $3. B) $4. C) $2. D) $1.
When you buy a corporate bond, you are
A. borrowing funds from the corporation. B. lending funds to the corporation. C. selling an ownership right in the corporation. D. acquiring an ownership right in the corporation. E. b and d
Congested non-toll roads is an example of a _____
a. merit good b. club good c. common resource d. nonrenewable resource
In 2010, Social Security pay-ins exceeded payouts in the U.S., for the first time in history
Indicate whether the statement is true or false