In the figure above, which budget line results in the most real income in terms of carrots?
A) AD
B) BD
C) CD
D) Real income is equal for all three budget lines.
D
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Determine whether each of the following is a positive or normative statement. (a) The Fed should lower interest rates to increase economic growth, because we're in a recession. (b) Higher government budget deficits cause higher interest rates
(c) The trade deficit should decline because of the fall in the value of the dollar. (d) Because of our high inflation rate, we must reduce the rate of money growth. (e) A generous unemployment insurance system is a primary cause of high unemployment in Europe. (f) Increased average labor productivity in a country should lead to faster growth. (g) Government budget deficits are too high in the United States and should be reduced.
A trade surplus occurs when
A) the value of imports is greater than the value of exports. B) government spending is less than total tax revenue. C) consumption is greater than disposable income. D) none of the above.
Marginal revenue product is essentially the additional revenue generating from selling one additional unit of output
a. True b. False Indicate whether the statement is true or false
Which is not a decision made by potential workers in the United States?
A. determining how to divide one's time between work and leisure B. choosing how much education to receive C. deciding which occupation to pursue D. choosing how much to produce to maximize firm profit E. deciding whether or not to participate in the labor force