The consumption possibilities curve is the
A) supply curve.
B) demand curve.
C) budget constraint.
D) indifference curve.
Answer: C
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The formula Es/(Es - Ed) is used to calculate the
A) deadweight loss from price support programs. B) increase in consumer surplus from a price ceiling. C) fraction of a specific tax that is passed through to consumers. D) none of the above
The percentage change in one's real income can be approximated by:
A. the percentage change in price level minus the percentage change in nominal income. B. the percentage change in nominal income minus the percentage change in the price level. C. dividing the price level, expressed as an index number, by nominal income. D. dividing real income by the price level, expressed as an index number.
If the number of unemployed workers is 200 million, and the number in the labor force is 500 million, what is the unemployment rate?
A) 0.4% B) 4% C) 14% D) 40%
If traders in a market have rational expectations, then
A) the price of an asset equals its fundamental value. B) prices of riskier assets are higher than prices of less risky assets. C) past prices of assets do not affect market participants' expectations of future asset prices. D) they make use of less information than they would if they had adaptive expectations.