Assume that goods X and Y are not Giffen goods. If the price of good X falls, a consumer will definitely
a. consume more of good X because her budget constraint has rotated outward.
b. consume more of good X because her budget constraint has shifted outward.
c. consume more of good Y because her budget constraint has rotated outward.
d. consume more of good Y because her budget constraint has shifted outward.
a
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If Techland's government reduces tax rates, ________
A) the economy's labor demand curve will shift to the left B) the economy's labor supply curve will shift to the left C) the economy's aggregate supply curve will shift to the left D) the economy's labor demand curve will shift to the right
A rent ceiling
A) increases the quantity of rental units supplied. B) cannot change the market price. C) set above equilibrium price has no effect. D) generally aims at insuring that landlords receive a higher rent than would otherwise be the case.
Suppose output is $440 billion, government purchases are $40 billion, desired consumption is $320 billion, and net exports are $35 billion. Then desired investment equals
A) $20 billion. B) $30 billion. C) $35 billion. D) $45 billion.
The optimum quantity of an input occurs when
A. diminishing returns set in. B. marginal revenue product equals input price. C. marginal physical product equals input price. D. marginal revenue product equals output price.