Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hot dog is $5.00. Tom's monthly income is
A. $40.
B. $100.
C. $200.
D. $400.
Answer: C
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When the Barro model assumes lump-sum taxes, this means
a. real taxes are independent of a household's income. b. nominal taxes depend negatively on a household's consumption. c. nominal taxes depend positively on a household's income. d. there is no tax on inheritances.
Which would be a qualification to the view that oligopoly is evocatively and productively inefficient?
A. Less foreign competition has stimulated more price competition in oligopolies B. Oligopolies are less technologically competitive so they lose market share C. Oligopolies may purposely keep prices below short-run profit-maximizing levels to bolster barriers to entry D. The more collusive practices of oligopolies lead to more profit-sharing among firms in the industry
In quantity theory terms, during a hyperinflation,
A) money supply increases rapidly, but velocity does not B) velocity increases rapidly, but money supply does not C) both the money supply and velocity increase rapidly D) neither the money supply nor velocity increase rapidly
In general equilibrium
A) supply equals demand for all goods in all periods. B) supply equals demand for most goods in all periods. C) supply equals demand in present value, but not in all periods. D) prices are exogenous.