Why is the budget line negatively sloped?
What will be an ideal response?
Given the consumer's budget and the prices for two goods, if a consumer buys more of one good, he or she must buy less of the other. The budget line shows the trade-off between the two goods, that is, as more of one is purchased, less of the other can be purchased.
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According to Olson the stationary bandit will be interested in growth and welfare:
a. True b. False
The three largest categories of spending by the Federal government in order from first to third would be
a. income security, net interest, and national defense b. national defense, net interest, and income security c. income security, health, and national defense d. health, income security, and national defense
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
A budget surplus is defined as the amount that the
A. government owes to lenders at any moment in time. B. government spends in any time period. C. government’s expenditures exceed receipts in any time period. D. government’s receipts exceed expenditures in any time period.