The X-intercept of the budget constraint represents
a. how much of good Y can be purchased if no good X is purchased and all income is spent.
b. how much of good X can be purchased if no good Y is purchased and all income is spent.
c. total income divided by the price of X.
d. b and c.
d
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If there is unemployment and all businesses are operating at less than full capacity, then
A) society is at the wrong point on the production possibilities curve. B) there are too many workers, and some people ought to leave the labor force. C) we are not experiencing a net social cost to unemployment because it is offset by the capacity levels of the factories. D) society is producing inside its production possibilities curve.
If the marginal propensity to consume (MPC) is 0.9, then the multiplier for a change in autonomous spending will be
A) 0.1. B) 9. C) 10. D) 100.
If Xit is correlated with Xis for different values of s and t, then
A) Xit is said to be autocorrelated B) the OLS estimator cannot be computed C) statistical inference cannot proceed in a standard way even if clustered standard errors are used D) this is not of practical importance since these correlations are typically weak in applications
Suppose the tax on gasoline is decreased from $0.60 per gallon to $0.40 per gallon. As a result,
a. tax revenue necessarily decreases. b. the deadweight loss of the tax necessarily decreases. c. the demand curve for gasoline necessarily becomes steeper. d. the supply curve for gasoline necessarily becomes flatter.