A consumer's budget line will rotate outward along the vertical axis if:
a. the price of the good on the horizontal axis decreases.
b. the price of the good on the vertical axis increases.
c. the price of the good on the horizontal axis increases.
d. the price of the good on the vertical axis decreases.
d
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So long as production in the oligopoly still occurs, recurring fixed costs have no impact on output under Cournot competition but do have an impact under Bertrand competition.
Answer the following statement true (T) or false (F)
The macroeconomist would most likely study
A) the effects of changing apple prices on the market for oranges. B) the effects of an increase in wage rates on a woman's decision to enter the labor force. C) the effects of a lower income tax rates on the nation's total production of goods and services. D) the effect of increased union wages on the cost of producing automobiles.
Which of the following is true within exchange economies:
A. All efficient allocations lie in the set of core allocations. B. All core allocations are efficient. C. The set of efficient allocations can be defined without knowing individual endowments. D. (a) and (b) are true. E. (a) and (c) are true. F. (b) and (c) are true. G. All of the above are true. H. None of the above are true.
The policy of running deficits and only gradually increasing taxes later to service the debt is referred to as
A) tax-smoothing. B) Ricardian equivalence. C) generational accounting. D) crowding out.