Refer to the figure above. If the price of a sweater is $3 and the budget constraint of the consumer is B3, his income is:
A) $45.
B) $90.
C) $135.
D) $270.
C
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Assume both the demand for bagels and the supply of bagels increase. Which of the following outcomes is certain to occur?
A. The equilibrium quantity of bagels will rise. B. The equilibrium quantity of bagels will fall. C. The equilibrium price of bagels will rise. D. The equilibrium price of bagels will fall.
Mercantilism held that
A) silver alone was the mainstay of national wealth. B) gold alone was the mainstay of national wealth. C) silver and gold were the mainstays of national wealth. D) silver and gold are not important for national wealth of a country. E) labor forces were the mainstay of national wealth.
If the monetary authorities persistently expand the money supply at a rapid rate, the probable result will be: a. inflation
b. low nominal interest rates. c. rapid growth of real GDP. d. all of the above.
Economists who study labor markets have documented
a. a general decline in the wages of college graduates over the last decade. b. an increasing trend in U.S. labor markets for employers to pay all costs of education and training. c. a decrease in the earnings gap between low-skill and high-skill workers over the past two decades. d. an increase in the earnings gap between low-skill and high-skill workers over the past two decades.