Refer to the budget line shown in the diagram. If the consumer's money income is $20, the:
A. prices of C and D cannot be determined.
B. price of C is $2 and the price of D is $4.
C. consumer can obtain a combination of 5 units of both C and D.
D. price of C is $4 and the price of D is $2.
D. price of C is $4 and the price of D is $2.
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Which of the following statements is false?
A) Another term for a Treasury bill is a T-bill. B) Treasury notes mature in 2 to 10 years. C) Treasury bonds are considered very safe investments, but Treasury bills are considered to be a more risky investment. D) It is unlikely the federal government will default on its bond obligations.
Use the following graph showing short-run cost curves for a perfectly competitive firm to answer the next question.
At what minimum price would the firm be willing to produce output in the short run?
A. P1 B. P2 C. P3 D. P4
If unemployment equals the natural unemployment rate, then there
A) is zero unemployment. B) is only frictional or structural unemployment. C) are no job openings existing at the time. D) is less than full employment.
In the market for money, an interest rate below equilibrium results in an excess ________ money and the interest rate will ________
A) demand for; rise B) demand for; fall C) supply of; fall D) supply of; rise