An increase in income (all else equal) will ALWAYS lead to a parallel shift of the budget line

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True . Since prices are unchanged, the relative prices of the goods stay the same, and thus the slope of the budget line remains the same.

Economics

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What matters to people is the real value of money or income

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Economics

Provision was made for squatters' rights in the 1785 Northwest Ordinance

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Economics

YearFootballs(in millions)P FootballsBooks(in millions)P BooksNominal GDPReal GDP2000 Base Yr55464949200165465454200276577765200347788462Assume the table has recorded the total output and prices of the only two goods produced. Looking at the figures in the table and using them to construct the GDP deflator, we can note the GDP deflator in 2003 was:

A. 109 B. 105 C. 74 D. 135

Economics

A farm is able to produce 10,000 bushels of peanuts per season on 10 acres. Assume it adds one more acre and is able to produce 12,000 bushels per season. The marginal product of the additional acre of land for this farm is:

a. 10,000 bushels per acre per year. b. 1,200 bushels per acre per year. c. 2,000 bushels per acre per year. d. 12,000 bushels per acre per year.

Economics