In the figure above, a decrease in the price of a bag of potato chips would result in the budget line
A) making a parallel shift toward point a.
B) making a parallel shift toward point c.
C) becoming flatter.
D) becoming steeper.
C
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Which round of GATT first addressed subsidies?
What will be an ideal response?
The age-earnings profile predicts that earnings will peak at
A) the 35-40 age level. B) the 45-50 age level. C) the 60-65 age level. D) retirement.
Reducing a tariff on a particular good does which of the following? a. It decreases the price of the domestic good to domestic consumers
b. It increases the price of the good to domestic consumers. c. It redistributes income away from domestic producers toward domestic consumers. d. both (a) and (c)
Which of the following is an example of an automatic stabilizer?
A. Congress legislates lower tax rates to increase consumption and investment. B. Tax rates are increased during a recession to maintain a balanced budget. C. A regressive income tax system reduces tax revenues (as a share of income) as income expands. D. Revenues from the corporate income tax increase sharply during a business boom but decline substantially during a recession, even though no new tax legislation has been enacted.