The vertical and horizontal axes intercepts of the budget line represent the:
a. quantity of goods that will be purchase if only that good is purchased.
b. preference of one good compared to another good.
c. quantity of each good that is outside the consumer's income.
d. only two choices that will spend the entire budget.
a
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In one-input models, all technologically efficient production plans are economically efficient and vice versa.
Answer the following statement true (T) or false (F)
The Human Development Index was proposed because
A) people confuse nominal GDP and real GDP. B) nominal GDP and real GDP are subjective measures. C) of the limitations of real GDP as a measure comparing the standard of living in different nations. D) the GDP deflator changes if the base year is changed. E) different nations have different populations.
In the above figure, the economy is at point A. Then the price level rises to 110 while the money wage rate remains constant. Firms will be willing to supply output equal to
A) less than $16.0 trillion. B) $16.0 trillion. C) more than $16.0 trillion. D) Without more information, it is impossible to determine which of the above answers is correct.
Banks that actively manage liabilities will most likely meet a reserve shortfall by
A) calling in loans. B) borrowing federal funds. C) selling municipal bonds. D) seeking new deposits.