The slope of the budget constraint is all of the following except
a. the relative price of two goods.
b. the rate at which a consumer can afford to trade one good for another.
c. the marginal rate of substitution.
d. constant.
c
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A decrease in the demand for loanable funds and a leftward shift of the demand for loanable funds curve results from
A) an increase in the real interest rate. B) technological improvements. C) tax cuts. D) decreases in the expected profit.
If, in a perfectly competitive industry, the market price facing a firm is above its average total cost at the output where marginal revenue equals marginal cost, then
A) new firms are attracted to the industry. B) existing firms will exit the industry. C) market supply will remain constant. D) firms are breaking even.
Among all assets, only money can be a
A) unit of account. B) store of value. C) medium of exchange. D) a way of amassing wealth.
An increase in the capital stock causes labor productivity to
a. decrease and the standard of living to increase b. increase and the standard of living to decrease c. decrease and the standard of living to decrease d. increase while the standard of living remains constant e. increase and the standard of living to increase