Assume the graph shown represents Kerri's budget constraint. If Kerri's income to spend on these two items increased, which of the following would be true?
A. Kerri's budget constraint would shift out, maintaining the same slope.
B. Kerri's budget constraint would shift out, and get steeper.
C. Kerri's budget constraint would shift in, maintaining the same slope.
D. Kerri's budget constraint would shift out, and get flatter.
B. Kerri's budget constraint would shift out, and get steeper.
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At the market clearing price
A) there is neither a shortage nor a surplus. B) quantity supplied equals quantity demanded. C) the supply and demand curves intersect. D) all of the above are correct.
You are a Canadian citizen who works in Toronto and owns a winter home in Phoenix, Arizona. When you spend the winters in Phoenix, an increase in the value of the Canadian dollar relative to the U.S. dollar should
A) help you as each Canadian dollar of your salary is now worth more U.S. dollars. B) hurt you as each Canadian dollar of your salary is now worth less U.S. dollars. C) hurt you as it is now more expensive to live in Phoenix since the Canadian dollar appreciation. D) help you as it is now less expensive to live in Canada since the Canadian dollar appreciation.
The curve that illustrates that higher tax rates could lead to lower tax revenues if economic activity is severely discouraged is called:
A. the Laffer Curve. B. the Phillips Curve. C. the aggregate demand curve. D. the production possibility curve.
“Pure competition or pure monopoly industries will tend to be one-price industries. Monopolistic competition, however, is a multiprice industry.” Explain
What will be an ideal response?