The above figure shows your budget line and indifference curves. What quantities of gasoline and movie rentals would you choose?
A) 25 gallons of gasoline and 15 movie rentals
B) 10 gasoline and 10 movie rentals
C) 20 gallons of gasoline and 5 movie rentals
D) 15 gallons of gasoline and 8 movie rentals
C
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List all the influences on selling plans, and for each influence, say whether it changes supply
What will be an ideal response?
A lower interest rate
A) lowers the marginal propensity to consume out of permanent income. B) raises the marginal propensity to consume out of permanent income. C) lowers the proportion of actual income considered to be permanent income. D) raises the proportion of actual income considered to be permanent income.
What would be the effect of a decrease in the real interest rate and an increase in the expected inflation rate?
a. Both changes would decrease aggregate demand. b. Both changes would increase aggregate demand. c. Both changes would increase short-run aggregate supply. d. Both changes would increase long-run aggregate supply.
Diana is a personal trainer whose client Charles pays $80 per hour-long session. Charles values this service at $100 per hour, while the opportunity cost of Diana's time is $75 per hour. The government places a tax of $10 per hour on personal trainers. Before the tax, what is the total surplus?
a. $25 b. $20 c. $5 d. $0