Assume that a consumer has a given budget or income of $12, and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. Refer to the information given above. What is the slope of the budget
line, if the quantity of apples were measured on the horizontal axis and bananas on the vertical axis?
A. -0.5
B. -0.8
C. -1.6
D. -2.0
Answer: D
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A country's balance of payments accounts records
A) only the goods and services purchases among countries over a period of time. B) the international trading, borrowing, and lending positions of a country over a period of time. C) the flow of human and non-human capital among countries over a period of time. D) only official transactions between governments over a period of time.
Why would a member of a cartel cheat?
What will be an ideal response?
A utility-maximizing consumer will choose a collection of goods
a. represented by a point below her budget line b. represented by a point above her budget line c. for which the marginal utility from each good is the same d. for which the marginal utility divided by the price is the same or each good e. for which the total utility from each good is the same
Exhibit 8-7 Consumption function
?
In Exhibit 8-7, the value of the marginal propensity to consume is:
A. high for C' than for C. B. lower for C" than for C. C. lower for C" than for C'. D. the same for C, C', and C".