A decrease in the price of a good or service
a. causes the budget line to rotate inward
b. causes a parallel outward shift of the budget line
c. means that less of the good can be purchased with a given income
d. causes the budget line to rotate outward
e. causes a parallel inward shift of the budget line
D
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Recessions typically cause the unemployment rate to ________ and the inflation rate to ________
A) fall; fall B) fall; rise C) rise; fall D) rise; rise
Which of the following is true?
a. Decision making should never be centralized b. If you decide to centralize the decision making authority, figure out a way to keep information hidden from it c. If you decide to centralize the decision making authority, figure out a way to transfer information to the third party d. If you decide to centralize the decision making authority, figure out a way to transfer information to the decision maker
Which of the following would be of particular interest to a microeconomist?
a. The price of fruit the typical household consumes. b. The nation's inflation rate. c. The nation's rate of unemployment. d. The budget of the national government. e. The growth of the economy.
Some economists argue that well-functioning capital markets that allow funds to move from those who have but do not need funds to those who need but do not have funds, are essential for rapid economic growth. Well-functioning capital markets are an example of:
A. entrepreneurship. B. growth-compatible institutions. C. physical capital. D. human capital.