The optimal degree of abstraction depends on the objective of the analysis
a. True
b. False
Indicate whether the statement is true or false
True
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A consumer has $100 to be spent on tables and chairs. If his income increases to $200, the prices of the goods remaining unchanged, his budget constraint:
A) pivots to the left along the vertical axis. B) pivots to the right along the horizontal axis. C) shifts to the left. D) shifts to the right.
All of the following are characteristics of an oligopolistic market EXCEPT
A) firms must consider the actions of their rivals. B) cartels eventually form to keep prices high. C) firms have the ability to influence prices. D) firms earn lower profits than a monopoly.
Based on the figure below. Starting from long-run equilibrium at point C, a favorable inflation shock that decreases inflation from ? to ?1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. A; a recessionary B. B; recessionary C. B; expansionary D. A; an expansionary
Opportunity cost is
A) the cost of producing all goods and services in the United States. B) the value of the next-best alternative that must be sacrificed to satisfy a want. C) the fixed cost of production. D) the value of the most useful alternative that must be sacrificed to obtain something or satisfy a want.