Sharmila has a budget line for DVDs and books. DVDs are on the vertical axis and books on the horizontal. Her budget line becomes steeper as
A) the price of a DVD falls.
B) the price of a DVD rises.
C) her income decreases.
D) her income increases.
A
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If the domestic producers of a good benefit from free trade, it suggests that the country:
A. is a net importer of that good. B. does not have an absolute advantage in that good. C. does not have a comparative advantage in that good. D. is a net exporter of that good.
If the demand for labor is plotted against the money wage, with the money wage on the vertical axis, then
a. an increase in the price level will cause the labor demand schedule to shift to the right. b. an increase in the money wage will cause the labor demand schedule to shift to the left. c. an increase in the money wage will cause the labor demand schedule to shift to the right. d. the labor demand schedule will be upward sloping.
Who believes that marginal analysis provides the best model of a firm's behavior?
a. William Baumol b. John K. Galbraith c. Milton Friedman d. Richard Lester e. Lester Thurow
A rising price level should shift the expenditure schedule
a. upward and decrease equilibrium real GDP. b. downward and increase equilibrium real GDP. c. downward and decrease equilibrium real GDP. d. upward and increase equilibrium real GDP.