Which of the following observations is not true of a budget line?
a. It indicates what choices are available to the consumer.
b. It is a curve of constant expenditure.
c. Its slope reports the market terms on which the consumer can trade one good for another.
d. It helps examine the consumer's preferences.
d
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The yield on a bond is that interest rate for which the present value of the interest and principal payments promised by the bond are
a. equal. b. as large as possible. c. equal to the price of the bond. d. equal to the face value of the bond.
Which of the following is not a finding of Cox and Alm regarding the gap between rich and poor?
a. The gap shrinks if taxes are taken into account. b. The gap shrinks if consumption, rather than income, is compared. c. The gap shrinks if the number of people in the household is taken into account. d. The gap shrinks if the state of residence is taken into account.
The figure below shows the market for computers in a small importing country. Dd and Sd are the domestic demand and supply curves of computers, respectively.
The consumption effect of the tariff on computers is worth
A. $76 million. B. $78 million. C. $2 million. D. $4 million.
What is the mission of the World Bank?
What will be an ideal response?