An increase in income, holding prices constant, can be represented as:

A) a change in the slope of the budget line.
B) a parallel outward shift in the budget line.
C) an outward shift in the budget line with its slope becoming flatter.
D) a parallel inward shift in the budget line.


B

Economics

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Public goods, when left to the private market will be:

A. undersupplied. B. over consumed. C. under consumed. D. oversupplied.

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In the second quarter of 1995, the following values were observed: real GDP = 4,359.3 billion; GDP Deflator = 325.1; and M1 = 989.5 . What is the value of velocity?

a. 32.51 b. 24.31 c. 14.32 d. 2.31

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What will be an ideal response?

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Refer to Table 9.2. In which market do buyers underestimate the chance of getting a lemon?

A. 1 only B. 2 only C. 1 and 3 only D. 2 and 3 only

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