Regarding the financial crisis of 2008-2009, and Americans' spending habits, it is correct to say that:
a. After 2000 . the ratio of consumer debt to GDP dropped steadily.
b. After the financial crisis of 2008-2009, many U.S. consumers incurred more debt.
c. Since 2009, the ratio of consumer debt to GDP has come down notably.
d. None of these is correct.
c
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Derive the budget line equation for the case where good 2 is a composite good. What is the vertical intercept and what is the slope?
What will be an ideal response?
If a shift in the demand curve that raises the price of oranges from $7 to $9 a bushel increases the quantity of oranges supplied from 4,000 bushels to 6,000 bushels, the
A) supply of oranges is elastic. B) supply of oranges is inelastic. C) demand for oranges is elastic. D) demand for oranges is inelastic.
Suppose both a monopolist and a perfectly competitive firm are producing in their respective markets at a point where marginal cost is $8 and marginal revenue is $10. What should the profit-maximizing firms do?
A. Both the monopolist and the perfectly competitive firm should increase output until MC = MR. B. Both the monopolist and the perfectly competitive firm should decrease output until MC = MR. C. The monopolist should increase output but the perfectly competitive firm should shut down. D. The monopolist should keep producing at this level but the perfectly competitive firm should decrease output until MC = MR.
Governments require immunizations of school children and offer immunization shots for free to low income people. An external benefit associated with immunization is:
A. the immunized staying well. B. one person being immunized does not prevent another from being immunized. C. a lower chance of epidemics. D. All of these