An increase in income produces a parallel, outward shift in the budget line
a. True
b. False
Indicate whether the statement is true or false
True
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To be able to engage in profit-maximizing price searching, a monopoly firm must be able to
A) prevent the entry of other firms into the market for its product. B) induce the entry of other firms into the market for its product. C) avoid earning negative economic profits in the short run. D) always earn zero economic profits.
The Fed is unlike other central banks in that it
a. has 12 branches. b. is completely centralized. c. has no real powers. d. also has control over fiscal policy.
Which types of models are built with assumptions?
a. economic models, but not models in other disciplines such as physics and biology b. economic models as well as models in other disciplines such as physics and biology c. models that are built for teaching purposes but not for research purposes d. bad models
An advance in technology commonly refers to the ability to produce
A) the same output with a smaller quantity of resources. B) more output with a fixed quantity of resources. C) more output with a greater quantity of resources. D) both a and b E) both b and c