A change in the relative prices of two goods is represented graphically by:
A. a change in the slope of an indifference curve.
B. a rightward parallel shift of the budget line.
C. a leftward parallel shift of the budget line.
D. a change in the slope of the budget line.
Answer: D
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In a particular year, if the real GDP of Country Y is $400,000 and the nominal GDP of Country Y is $450,000, the GDP deflator is ________
A) 115 B) 112.5 C) 102 D) 0.17
The price elasticity of demand for corn is 0.4. A new hybrid of corn is discovered and all farmers start to use it, which increases the quantity of corn they can produce from each acre. What happens to the farmers' total revenue?
A) The total revenue will increase. B) The total revenue will decrease. C) The total revenue will not change. D) There is not enough information to determine what happens to the total revenue.
Which of the following is an example of moral hazard?
A. A college student drinking alcohol and partying instead of studying. B. A homeowner with fire insurance not clearing bush around their property. C. A chronically sick person using hospital services. D. A chronically sick person buying more health insurance than average.
Innovation:
A. is the first discovery of a product or process, rather than its first successful commercial introduction. B. includes new products but not new production methods. C. is also known as diffusion. D. can either increase or decrease the market share of a large firm, depending on whether it is introduced by the large firm or one of its competitors.