A consumer's budget constraint is
A) the limited income that a consumer has to spend on goods and services.
B) the extent to which one's preferences are limited by one's income.
C) the price ratio a consumer faces in the marketplace.
D) the rate at which the consumer must give up one good to purchase an additional unit of the other goods in the market.
A
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There is a proverb "anything worth doing is worth doing well." Do you think an economist would agree with this proverb?
What will be an ideal response?
As long as marginal cost is below average cost, average cost will be:
a. falling. b. rising. c. constant. d. changing in a direction that cannot be determined without more information.
Answer the question on the basis of the following data. All figures are in billions of dollars. Gross Investment 18 National Income 100 Net Exports 2 Personal income 85 Personal Consumption Expenditures 70 Saving 5 Government Purchases 20 Net Domestic Product 105 Statistical Discrepancy 0 Refer to the above data. Consumption of fixed capital is:
a) $5. b) $10. c) $20. d)$30.
Figure 4-7
Refer to . The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied. How much revenue does the $.60-per-gallon tax generate for the government?
a.
$40 billion
b.
$48 billion
c.
$50 billion
d.
$60 billion