If the graph shown represents Heather's budget constraint, and the price of hairbands were to decrease, the slope of Heather's budget constraint would become:
A. flatter, reflecting the fact that hairbands are now relatively less expensive.
B. steeper, reflecting the fact that hairbands are now relatively more expensive.
C. flatter, reflecting the fact that earrings are now relatively less expensive.
D. steeper, reflecting the fact that earrings are now relatively more expensive.
A. flatter, reflecting the fact that hairbands are now relatively less expensive.
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Search activity ________
A) occurs when there is a surplus of the good B) is unnecessary when a black market exists C) increases when an effective price ceiling is set on a good D) decreases when an effective price ceiling is set on a good
The Stability and Growth Pact (SGP) adopted in 1997 addressed concerns related to the:
A) tendency of nations to let their fiscal discipline promises slip once they had attained Eurozone member status. B) micromanagement tendency of the ECB toward its members. C) loss of political power of the European Parliament. D) tendency of nations to revert to using their own national currencies.
In the short run there is ________ relationship between the unemployment rate and the rate of inflation.
A. an indeterminant B. no C. a negative D. a positive
Which of the following refers to transfer pricing by a multinational enterprise (MNE)?
A. The process of setting a high price for a good in a market with relatively inelastic demand and setting a low price in a market with relatively elastic demand B. Setting prices by the company for things that move between the units of the company C. The act of buying a good at a low price and selling it at a high price D. Lowering its product prices to undercut foreign competitors and gain a greater market share