Assume the graph shown represents Grace's budget constraint. Which of the following is true?
A. Grace's total utility is constant along her budget constraint.
B. Grace's total expenditure is constant along her budget constraint.
C. Grace's marginal utility of each good is the same for each combination of goods on her budget line.
D. Grace is indifferent between consuming any bundle that lies on the budget constraint.
Answer: B
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The investment demand curve indicates that there is a(n):
A. positive relationship between the real interest rates and the level of investment spending, all other things equal. B. inverse relationship between the real interest rates and the level of investment spending, all other things equal. C. inverse relationship between the determinants of investment and the level of investment spending, holding interest rates constant. D. direct relationship between the real interest rates and the level of investment spending, all other things equal.
When the U.S. government runs a budget deficit, its primary way of covering that deficit is
A) printing money. B) defaulting on its payments. C) selling stock. D) issuing bonds.
Which of the following is a positive question?
A) What are the returns to education? B) Can a monopoly ever be good for society? C) Is there value in putting yourself in someone else's shoes? D) Are companies like Nike exploiting workers in the developing world?
Which of the following methods is used by unions to increase the demand for the labor of its members?
A) Decrease the marginal product of union members. B) Support minimum wage laws. C) Oppose import restrictions. D) Decrease demand for the good produced.