Refer to Goods X and Y. The relative price of good X in terms of good Y is always equal to
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.
a. the magnitude of the slope of the budget line.
b. the marginal value of X in terms of Y.
c. the horizontal intercept of the budget line.
d. the vertical intercept of the budget line.
a. the magnitude of the slope of the budget line.
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In a prisoners' dilemma game, in the Nash equilibrium
A) neither player gets his or her best outcome. B) both players get their best outcome. C) one player gets his or her best outcome and the other player does not. D) collusion would not alter the outcome. E) Either answer A or C might be correct depending on whether the players communicate with each other or do not communicate with each other.
If the Midwest experiences a severe drought that damages the corn crops, we should expect the
a. supply of corn will decrease and the price of corn will rise. b. demand curve for corn will decrease and the price of corn will fall. c. demand curve for corn will increase and the price of corn will rise. d. supply of corn will increase and the price of corn will fall.
The crowding-in effect results from the ______________ on aggregate demand.
Fill in the blank(s) with the appropriate word(s).
The Federal Reserve System is
A. controlled by the Department of the Treasury. B. the central bank for the United States. C. completely similar to the Bank of England. D. All of the above are correct.