Refer to Budget Lines. If the consumer purchased basket B last year and purchases basket C this year, we can conclude that
a. the consumer is not behaving optimally.
b. the consumer's tastes changed between this year and last year.
c. the consumer's indifference curves cannot be convex.
d. the law of demand does not hold for this consumer.
b. the consumer's tastes changed between this year and last year.
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Refer to the above figure. A shortage occurs if the government imposes
A) a price floor at $60. B) a price floor at $20. C) a price ceiling at $60. D) a price ceiling at $20.
Per capita real GDP is a questionable indicator of the state of the economy because it does not account for:
a. growth of national income. b. changes in inflation. c. income distribution. d. changes in the size of the population. e. changes in the level of output.
In addition to higher wages, early labor unions negotiated with business owners for ______.
a. shorter hours and workweeks b. increased mandatory overtime c. benefits for unmarried partners d. paid vacation time
Relative to a closed economy, if Utopia opened itself to trade, domestic tile producers would
A. produce the same amount of tile. B. produce 150 fewer cases of tile. C. produce 100 fewer cases of tile. D. produce 150 more cases of tile.