Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $375, the price of a DVD is $15 and the price of a CD is $25. At point D she is buying ________ DVDs and ________ CDs.
A. 25; 15
B. 25; 0
C. 50; 30
D. 0; 15
Answer: B
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Buyers and sellers in a flea market often determine the terms of exchange through a process of ________
A) collective bargaining B) bilateral bargaining C) sniping D) arbitration
The excess burden of the corporate income tax is
A. almost zero. B. greatest when the interest elasticity of saving is zero. C. a result of the combined distortion in the pattern of investment and a reduction in total investment. D. none of these answer options are correct.
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
During the Financial Crisis of 2007-2008, investors demanded much higher risk premiums in their investments. This caused the SML to:
A. Shift up B. Shift down C. Become steeper D. Become flatter