The budget constraint for a consumer who only buys apples (
A) and bananas (B) is PAA + PBB = I where consumer income is I, the price of apples is PA, and the price of bananas is PB. To plot this budget constraint in a figure with apples on the horizontal axis, we should use a budget line represented by the slope-intercept equation:
A) A = -I/PA + (PB/PA)B
B) A = I/PA - (PB/PA)B
C) B = -I/PB + (PA/PB)A
D) B = I/PB - (PA/PB)A
D
You might also like to view...
If the Fed can ________ inflation expectations, it might achieve ________ inflation without ________ the unemployment rate
A) lower; lower; lowering B) raise; lower; raising C) lower; lower; raising D) raise; higher; lowering E) lower; higher; lowering
Which of the following is (are) correct? In the classical system, the suppliers of bonds were the
a. government which always sold bonds to finance a new project. b. firms which financed all investment expenditures by selling bonds. c. government which might sell bonds to finance spending in excess of tax revenues. d. Both b and c.
Splitting up a natural monopoly into two or more smaller firms would not only lower the average cost of production but also reduce price
a. True b. False Indicate whether the statement is true or false
Why is investment spending a highly volatile component?
What will be an ideal response?