Budget constraints exist for consumers because
a. their utility from consuming goods eventually reaches a maximum level
b. even with unlimited incomes, they have to pay for each good they consume
c. they have to pay for goods and they have limited incomes
d. prices and income are inversely related
e. demand curves for goods generally slope downward
C
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Which of the following causes the aggregate production function to shift up?
A) An increase in capital stock B) A decrease in the productivity of workers C) An improvement in technology D) An increase in the total efficiency units of labor
Which of the following is a critical element of the Heckscher-Ohlin model?
A) That different goods display different factor intensities in their production. B) That some countries have no comparative advantage in anything. C) That trade may not be beneficial. D) All of the above.
Fully anticipated inflation occurs when
A) the actual inflation rate equals the anticipated inflation rate. B) the actual inflation rate is less than the anticipated inflation rate. C) the inflation rate is zero. D) the anticipated inflation rate and the unanticipated inflation rate are equal.
An eclectic aggregate supply curve:
A. Is the supply-side counterpart to monetarist and Keynesian assumptions about the shape of aggregate demand. B. Combines elements of the monetarist and Keynesian assumptions about the shape of aggregate supply. C. Maintains a constant upward slope as the economy moves through the business cycle. D. Is horizontal at all levels of output.