If the price of good X decreases, what will happen to the budget line?
A. It will have a parallel shift inward.
B. It will have a parallel shift outward.
C. It will become flatter.
D. It will become steeper.
Answer: C
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With perfect price discrimination, the level of output
A) exceeds the efficient quantity. B) is the same as the amount produced by any monopoly that price discriminates. C) is the same as the amount produced in a perfectly competitive market. D) equals the amount produced by a single-price monopoly. E) is unknown.
Price-taking producers have horizontal marginal revenue curves.
Answer the following statement true (T) or false (F)
A recession can be expected to reduce inflation in the economy if the recession is caused by a(n)
a. increase in aggregate demand. b. increase in aggregate supply. c. decrease in aggregate demand. d. decrease in aggregate supply.
The population of Alpha totals one million people, 40 percent of whom are employed. Average output per worker in Alpha is $20,000. Real GDP per person in Alpha totals:
A. $12,000. B. $8,000. C. $20,000. D. $50,000.