The budget line shows
a. different levels of consumption associated with different levels of incomes.
b. the affordable combinations of goods and services you can buy with your income.
c. different levels of inputs needed to produce specific level of output.
d. none of the above.
b. the affordable combinations of goods and services you can buy with your income.
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Caroline is an artist. She purchases canvas, paints, brushes, and accessories for $75. She sells one of her original paintings to an art gallery for $1,500, even though an art lover would pay $4,500 for that painting
How much value does Caroline add? A) $75 B) $1,425 C) $1,500 D) $4,425
Why would a firm choose to remain in an industry in which it makes an economic profit of zero?
What will be an ideal response?
One undesirable effect of social regulation is that it
A) affects smaller firms disproportionately, creating anticompetitive effects. B) destroys incentives for firms to engage in marginal cost pricing. C) raises prices of goods to consumers, while lowering prices to business and special interest groups. D) reduces the effectiveness of economic regulation.
Related to the Economics in Practice on p. 496: In 2014, the Congressional Budget Office estimated that the federal debt was ________ percent of GDP.
A. 24 B. 42 C. 74 D. 100