If both prices increase by 10 percent and money income remains constant, the budget line for both goods in question will:
a. become steeper
b. become flatter
c. will have the same slope
d. will become vertical.
c
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If a good is a Giffen good, then
a. the supply curve is downward sloping. b. the demand curve is upward sloping. c. the demand curve is horizontal. d. there is no optimal level of consumption for the consumer.
According to Richard Baldwin, studies indicating massive increases in trade resulting from currency unions are:
A) biased because of use of data from rich countries. B) generally applicable to the euro. C) underestimating the impact of the euro on intra-European Union trade. D) not the result of lowering the transaction costs for trade within the euro area.
A supply schedule is characterized by which of the following?
(A) It shows the quantity supplied at only one price. (B) It lists supply for a specific good. (C) It is sensitive to changes in the costs of labor and parts. (D) It shows the factors that could influence supply.
Two of the economy's most important financial intermediaries are
a. suppliers of funds and demanders of funds. b. banks and the bond market. c. the stock market and the bond market. d. banks and mutual funds.