The ratio of the prices of two goods multiplied by -1 is equal to the slope of the budget line
a. True
b. False
A
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Compared to an economy's self-correcting mechanism, active contractionary fiscal policy will
a. work more slowly and calmly. b. work more quickly. c. have less deflationary effects. d. have a smaller effect on real GDP.
In a perfectly competitive market
A. demand facing the industry is perfectly elastic. B. a firm must lower price to attract more customers. C. the additional revenue from selling one more unit of output is less than price. D. all of the above E. none of the above
Edith is buying products X and Y with her money income. Suppose her budget line shifts rightward (outward). This might be the result of:
A. the prices of X and Y increasing while her money income remains constant. B. her money income decreasing while the prices of X and Y remain constant. C. her money income increasing more than proportionately to increases in the prices of X and Y. D. none of these.
In economics, the total amount received for selling a good or service is referred to as
A) revenue. B) profit. C) capital gains. D) factor payments.