Assume that the quantity of apples is measured on the horizontal axis and the quantity of oranges is measured on the vertical axis. If the budget line rotates upward while keeping the same horizontal intercept, it implies that
A. the price of oranges has increased.
B. the price of apples has decreased.
C. the price of oranges has decreased.
D. the available income has increased.
Answer: C
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As the real interest rate increases, the quantity of saving supplied ________ and the quantity of saving demanded ________.
A. increases; decreases B. does not change; does not change C. increases; increases D. decreases; increases
The existence of heavy training costs would provide a rationale for
a. insider-outsider models. b. IS-LM models. c. sticky price models. d. modern efficiency wage models
A new law applied to a competitive market that requires laid off workers be paid a large severance payment will
A) not generate a deadweight loss. B) increase total welfare. C) increase consumer surplus in the market. D) decrease consumer surplus in the market.
The phenomenon of nonparticipation appears to be a permanent state
Indicate whether the statement is true or false