Hector has $1,000 a month to spend on clothing and food. The price of clothing is $50 and the price of food is $20. What is the equation for Hector's budget constraint?
A. ($50 × Clothing) / ($20 × Food) = $1,000
B. Clothing + Food < $1,000
C. $50 × Clothing + $20 × Food ? $1,000
D. $50 × Clothing + $20 × Food = $1,000
Answer: D
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Refer to the above figure. Suppose the relevant aggregate demand curve is AD2. If the government wants to use discretionary fiscal policy to close the existing gap, it should
A) decrease taxes. B) increase taxes. C) increase the money supply. D) decrease government spending.
It's logical, it's a rule of thumb, it's an economic guideline: By producing at a quantity where MR = MC,
a. profit is guaranteed b. profit becomes zero c. the firm incurs a loss d. profit is maximized (or loss minimized) e. the firm should increase quantity
Starting from long-run equilibrium, the long-run impact(s) of a sharp drop in oil prices, compared to the original equilibrium, is(are):
A. higher inflation and the same output. B. the same inflation and the same output. C. lower inflation and lower output. D. higher inflation and lower output.
Jordan has the following assets and liabilities:Two cars$10,000House$200,000Mortgage$100,000Cash$1,000Car loans$3,000Checking account balance$2,000Credit card balance$1,000Jordan's wealth is ________, the value of Jordan's assets is ________, and the value of Jordan's liability is ________.
A. $107,000; $213,000; $100,000 B. $109,000; $213,000; $104,000 C. $213,000; $317,000; $104,000 D. $111,000; $213,000; $100,000