To simplify our consumption models, suppose U.S. consumers only purchase food and all other goods where food is plotted along the horizontal axis of the indifference map. If the U.S
Congress passes an economic stimulus package that pays $300 to each person, how does this affect the budget line for each consumer? A) Makes the budget line steeper
B) Makes the budget line flatter
C) Parallel outward (rightward) shift
D) Parallel inward (leftward) shift
E) none of the above
C
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The game in Scenario 13.14
A) is Stackelberg if both players move at the same time; Cournot if one player moves first. B) is Cournot if both players move at the same time; Stackelberg if one player moves first. C) Stackelberg no matter what the timing of moves. D) Cournot no matter what the timing of moves. E) is neither Stackelberg nor Cournot.
What is a normal rate of return?
What will be an ideal response?
Minimum-wage laws are least likely to affect the wages paid to
a. teenagers. b. low-skill workers. c. inexperienced workers. d. highly-educated workers.
Answer the following statement(s) true (T) or false (F)
1. The long-run equilibrium level is where the economy will settle when undisturbed. 2. Changes in the stock of capital will alter the amount of goods and services the economy can produce. 3. In recent history, computers and specialized software shifted the short-run aggregate supply curve leftward. 4. Japan’s aging workforce has shifted that nation’s long-run aggregate supply curve rightward. 5. The short-run equilibrium level of real output and the price level are given by the intersection of the aggregate demand curve and the short-run aggregate supply curve.