Refer to Figure 10-8. If the price of biscotti is $1.50 and the price of a cappuccino is $3.00, what is the slope of the budget constraint?
A) -(3.00 - 1.50 )/(3.00 + 1.50 ) = -1/3
B) -2
C) -1/2
D) The slope cannot be determined without the value of income.
B
You might also like to view...
We expect that in the long run, exchange rate movements will largely reflect inflation differentials
Indicate whether the statement is true or false
If Y = income, G = government spending, T = autonomous taxes, and t = income tax rate, then the government budget deficit can be expressed as
A) G - T/Y(t). B) G - T. C) Y + G - T - ty. D) G - T - ty.
If you observed that the both the wage rate and employment increased, which of the following would be a possible explanation?
a. A decrease in labor demand b. An increase in labor demand that outpaced an increase in labor supply c. A decrease in labor demand coupled with an increase in labor supply d. A decrease in labor supply e. An increase in labor supply that outpaced an increase in labor demand
Refer to the diagram for a private closed economy. In this economy, aggregate expenditures:
A. do not change as GDP increases.
B. increase by $2 for every $5 increase in GDP.
C. increase by $2 for every $4 increase in GDP.
D. increase by $2 for every $3 increase in GDP.