The value of a dollar:
A. is its purchasing power.
B. remains constant over time.
C. is its face value.
D. is set by the government.
Answer: A
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In which of the following types of auctions can bidders NOT see each other's bid?
A) English auction B) Dutch auction C) Silent auctions D) Sealed-bid auction
Rationing occurs for goods
A) that have a positive price. B) that have a zero price. C) that have a negative price. D) that are not manufactured.
Suppose two goods (X and Y ) are being produced efficiently and that the production of X is always more labor intensive than the production of Y. Production depends only on two factors (capital and labor); these may be smoothly substituted for each other. The total quantities of these inputs are fixed. An increase in the production of X and a decrease in the production of Y will
a. increase the capital-labor ratio in each firm. b. decrease the capital-labor ratio in each firm. c. leave the capital-labor ratio for each firm unchanged. d. increase the capital-labor ratio in Y production and decrease the capital-labor ratio in X production.
A decrease in the price of a good that is measured on the horizontal axis will cause the budget constraint to rotate outward (with a new larger intercept on the horizontal axis)
Indicate whether the statement is true or false