The above figure gives your budget line between CDs and magazines. If the price of a magazine falls, then the budget line
A) shifts outward and the slope does not change.
B) rotates inward with no change in the horizontal intercept.
C) rotates inward with no change in the vertical intercept.
D) rotates outward with no change in the vertical axis.
D
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Refer to the scenario above. What will be the GDP per capita of country A at the beginning of year 2012?
A) $2,410.26 B) $2,800 C) $2,760.24 D) $2,546.16
A ________ in the real interest rate ________ consumption expenditure and shifts the consumption function ________
A) fall; increases; downward B) rise; decreases; upward C) fall; increases; upward D) fall, decreases; upward E) rise, increases; downward
Which of the following statements about the price elasticity of demand is correct?
A) The elasticity of demand for a good in general is equal to the elasticity of demand for a specific brand of the good. B) Demand is more elastic in the long run than it is in the short run. C) The absolute value of the elasticity of demand ranges from zero to one. D) Demand is more elastic the smaller the percentage of the consumer's budget the item takes up.
From the standpoint of a soft drink company the question of "What goods and services should be produced?" is best represented by which of the following decisions?
A) whether or not to hire additional workers B) whether or not to increase its advertising C) whether or not to shut down selected manufacturing facilities D) None of the above are examples.