In the Keynesian model, consumption depends on:
A. the natural rate of unemployment.
B. disposable income.
C. potential output.
D. whether the government has a budget surplus or deficit.
Answer: B
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If a firm can influence the market price of the good it sells, then it is said to have __________
Fill in the blank(s) with correct word
With a call option, the option holder:
A. can buy or sell, it is their option. B. can buy the asset but only after the date specified. C. has the right to buy the asset. D. has the right to sell the asset.
A decrease in a consumer's budget set can be caused by:
A. an increase in prices. B. a decrease in prices. C. an increase in income. D. a change in preferences.
Refer to the information provided in Figure 16.4 below to answer the question(s) that follow.Los Angeles International Airport (LAX) is located next to Playa Del Rey. The noise from air traffic negatively affects individuals living in Playa Del Rey, however, this cost is not considered by airlines or air travelers. The airlines feel they have a right to use the airspace while the individuals living in Playa Del Rey feel they have the right to quiet. The following diagram depicts the marginal costs and marginal benefits associated with air travel.
Figure 16.4Refer to Figure 16.4. Suppose the government assigns property rights to ________. No negotiations
occur between the parties. The resulting level of air travel is 0 units. A. the airlines B. the residents of Playa Del Rey C. both the airlines and the residents of Playa Del Rey in a 50-50 split D. indeterminate from the given information.