Draw a two period budget line where the borrow/lending rate of interest, r, allows consumers to choose consumption in each of the two periods. C1 and C2 given their anticipated income on two periods, Y1 and Y2 . The vertical (C2) intercept is
a.
b.
c.
d.
d
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Suppose that when price is $10, quantity supplied is 20 . When price is $6, quantity supplied is 12 units. The price elasticity of supply is:
a. 0.5. b. 0.8. c. 1.0. d. 1.5. e. 2.0.
The U.S. Lorenz curve today is closer to the perfect equality line than in 1929
a. True b. False Indicate whether the statement is true or false
Which of the following statements is incorrect?
A. Changes in the composition of the population affect the demand for a product. B. As a greater fraction of the population becomes elderly, the demand for medical services will tend to increase. C. As the population rises, the market demand curve shifts to the right. D. None of the statements associated with this question are incorrect.
Which of the following are components of fiscal policy?
What will be an ideal response?