A change in consumer preferences will shift the budget line.
Answer the following statement true (T) or false (F)
False
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If the firm in the figure above is unregulated, the consumer surplus will be
A) zero. B) $100. C) $400. D) $200.
Resources devoted to complying with the tax laws are a type of deadweight loss
a. True b. False Indicate whether the statement is true or false
Which of the following would cause the price elasticity of demand for a variable input to be greater?
A) the smaller the price elasticity of demand for the final product B) the longer the time period being considered C) the smaller the proportion of total costs accounted for by the variable input D) the harder it is for a variable input to be substituted for by other inputs
According to the Taylor rule, if inflation equals 3 percent and there is a recessionary gap equal to 3 percent of potential output, the Fed will set a real interest rate of ________ percent and a nominal interest rate of ________ percent.
A. 1; 3 B. 3; 3 C. 1; 4 D. 2; 4