If the quantity of good A (QA) is plotted along the horizontal axis, the quantity of good B (QB) is plotted along the vertical axis, the price of good A is PA, the price of good B is PB and the consumer's income is I, then the slope of the consumer's
budget constraint is ________. A) -QA/QB
B) -QB/QA
C) -PA/PB
D) -PB/PA
E) I/PA or I/PB
C
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Mike and Tom debone chicken breasts for Ted's Chicken Co. Mike is new and can only debone 60 chicken breasts per hour by hand, while Tom's experience allows him to debone 120 chicken breasts per hour by hand. Ted buys one new machine that can debone 100 chicken breasts per hour. Both Mike and Tom work the same 40 hours per week, but one of them is assigned to operate the machine instead of deboning the chicken breasts by hand. To obtain maximum average hourly productivity, ________ is assigned to use the machine and their combined average hourly productivity as a team is ________ chicken breasts.
A. Mike; 110 B. Tom; 80 C. Mike; 80 D. Tom; 110
According to Keynesian coordination failure theory, the primary causes of business cycles are
A) shocks to aggregate demand. B) monetary factors. C) technology shocks. D) waves of self-fulfilling optimism and pessimism.
If the government wanted to reduce interest rates without changing output, it should
a. increase consumption and reduce the money supply. b. increase the money supply and raise government spending. c. increase the money supply and raise taxes. d. both b and c.
Sam, after taking a $200 loan from the bank to finance an investment that pays $1000 50% of the time and $0 50% of the time at a 100% interest, discovers another riskier investment that pays out $5,000 but only 10% of the time, while the other 90% of the time it pays zero. Would the he want to switch to the riskier investment?
a. Yes because his return has increased b. No because his liability to the bank has increased c. No because his return has decreased d. None of the above