The figure above gives your budget line for magazine and CDs per month. Given that your income equals $60 per month, what is your real income in terms of magazines?
A) 12 magazines
B) 6 magazines
C) 2 magazines
D) $60/month
A
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Along a perfectly competitive industry's long-run supply curve
A) economic profits are positive. B) economic profits are zero. C) entrepreneurs earn an above-average rate of return. D) the number of firms is constant.
Suppose the Federal Reserve wants to decrease the money supply by $100,000 . If the required reserve ratio is 0.1, which of the following actions will achieve the Fed's goal?
a. The Fed must purchase $100,000 in bonds. b. The Fed must sell $100,000 in bonds. c. The Fed must purchase $10,000 in bonds. d. The Fed must sell $10,000 in bonds. e. The Fed must sell $90,000 in bonds.
From 2006 to 2008 there was a dramatic fall in the price of houses. If this fall made people feel less wealthy, then it would have shifted
a. aggregate demand right. b. aggregate demand left. c. aggregate supply right. d. aggregate supply left.
Price leadership
A. Results in inflexible prices. B. Results in predatory pricing. C. Accounts for kinked oligopoly behavior. D. Helps achieve monopoly profit for the market.