Use the above figure. When the budget line rotates from "c" to "b"
A. the price of product K decreases and the quantity demanded of product K increases.
B. the price of product K increases and the quantity demanded of product K decreases.
C. the price of product J increases and the quantity demanded of product J decreases.
D. the price of product J decreases and the quantity demanded of product J increases.
Answer: A
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In a pure capitalist economy, "what to produce" is determined by
A. government central planning committees. B. the price mechanism. C. the credo: "Each according to his ability, to each according to his needs". D. all of the choices are true.
The best definition of GDP is
A. A physical measure of the capital stock of the economy. B. The sum of the physical amounts of goods and services in the economy. C. A dollar measure of final output produced during a given time period within a nation's borders. D. A measure of the per capita economic growth rate of the economy.
The impact of higher taxes would be examined by
A) a microeconomist. B) a macroeconomist. C) both a macroeconomist and a microeconomist. D) neither a macroeconomist nor a microeconomist.
The high school graduation rate rose from 45% to 85% from 1950 to 1980, and this
A. was more than countered by an opposite trend among men so growth, was negative. B. should have been a source of growth but wasn't. C. was entirely countered by an opposite trend among men so growth, was slow. D. was a significant source of economic growth during that period.