The vertical and horizontal axes intercepts of the budget line represent the:
A. quantity of goods that will be purchase if only that good is purchased.
B. preference of one good compared to another good.
C. quantity of each good that is outside the consumer's income.
D. only two choices that will spend the entire budget.
Answer: A
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The mean of 5 numbers is 130. If one of the numbers is recorded incorrectly as 59 instead of 95, what would be the correct mean?
A) 140 B) 130 C) 137.2 D) 126.52
Over the past year, output grew 6%, capital grew 2%, and labor grew 4%. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, respectively, how much did productivity grow?
A) 2.0% B) 2.6% C) 3.0% D) 3.3%
Bill has $10 to spend on a Superman, Batman, or an X-Men T-shirt. Bill buys the Superman T-shirt and the Batman shirt was a close second choice. What is the opportunity cost?
a. The amount he spent, $10. b. Nothing, since he got his preferred choice. c. The Batman T-shirt. d. The X-Men T-shirt.
Starting from potential output, if firms become more optimistic about the future and decide to increase their investment in new capital, then this will generate a(n) ________ gap and inflation will ________.
A. expansionary; decrease B. recessionary; decrease C. expansionary; increase D. recessionary; increase