Suppose Jackie can buy either video games or Blu-rays. If the prices of both goods double, and Jackie's income also doubles, what will happen to Jackie's budget line?
A. It will shift out.
B. It will shift in.
C. It will not change.
D. It will swivel so that the slope is twice as steep.
Answer: C
You might also like to view...
If MR>MC, then when an additional unit is sold, the firm's
A. profit will decrease. B. profit will be positive. C. profit will be negative. D. profit will increase.
If the money multiplier is 4, the required reserve ratio is
A. 4%. B. 20%. C. 25%. D. 50%.
Which of the following is held constant along the demand curve?
A. quantity B. price of the good C. income D. both A and B
Diseconomies of scale occur mainly because:
A. Of the law of diminishing returns B. Firms in an industry must be relatively large in order to use the most efficient production techniques C. Of the inherent difficulties involved in managing and coordinating a large business enterprise D. The short-run average total cost curve rises when marginal product is greater than average total cost