Assume Kara's budget constraint is represented by line A in the graph shown, and that her income to spend on these two items is $24. What would cause her budget constraint to move to B?
A. The price of movie tickets falls to $4.
B. The price of movie tickets increases to $4.
C. The price of movie tickets falls to $6.
D. The price of movie tickets increases to $6.
B. The price of movie tickets increases to $4.
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Which of the following is associated with a contractionary monetary policy?
A) raising bond prices B) selling bonds C) lowering the required reserve ratio D) lowering the differential between the discount rate and the federal funds rate
The above table gives the market demand and market supply schedules for soda. There are no external benefits or external costs. What is the efficient quantity of soda?
A) 1400 B) 1000 C) 600 D) It is impossible to determine the efficient quantity without more information.
On average, in the recessions since 1950, it has taken ________ for real GDP to return to its cyclical peak
A) about 6 months B) about 1 year C) about 18 months D) almost 2.5 years
If firms are exiting a market then
A) economic profits must be zero B) economic profits must be greater than zero C) economic profits must be less than zero D) both economic and accounting profits must be greater than zero.