When the price of a good changes, the income effect can be found by comparing the equilibrium quantities purchased
A) on the old budget line and the new budget line.
B) on the original indifference curve when faced with the original prices and when faced with the new prices.
C) on the new budget line and a hypothetical budget line that is a shift back to the original indifference curve parallel to the new budget line.
D) on the new indifference curve.
C
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The supply curve for Japanese yen (in terms of U.S. dollars) is ________.
A. downward-sloping because a lower dollar price of yen means U.S. goods are cheaper to the Japanese B. downward-sloping because a higher dollar price of yen means U.S. goods are cheaper to the Japanese C. upward-sloping because a lower dollar price of yen means U.S. goods are cheaper to the Japanese D. upward-sloping because a higher dollar price of yen means U.S. goods are cheaper to the Japanese
All of the following are components of the expenditure approach to measuring GDP EXCEPT
A) Shaniq's purchase of a meal at the Olive Garden in Atlanta. B) a Senator from Iowa being paid the monthly salary. C) the army buying new M1 Abram tanks. D) Ford Motor Company buying new Dell computers for use in its marketing department in Dearborn, Michigan.
An individual's demand curve for a good is ____ her marginal utility curve for the good
a. based on b. the mirror image around the vertical axis of c. twice as steep as d. half as steep as
Most economists believe that the theory of rational expectations is
a. more correct in the long run than the short run. b. more correct in the short run than the long run. c. correct in both the long run and short run. d. incorrect because it is based on false logic.