The budget line will shift parallel to the right if:
A. income increases.
B. income decreases.
C. the price of the good on the vertical axis increases.
D. the price of the good on the vertical axis decreases.
Answer: A
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The difference between the salaries paid to movie stars and to actors who play supporting roles is much greater today than it was in the 1930s and 1940s. What factor explains this increase in relative salaries over time?
A) There was no actors' union in the 1930s and 1940s. The rise of strong actors' unions has caused salaries of movies stars to be greater today than in previous years. B) Technological advances in the entertainment industry increase the revenue that successful movies can earn. This has increased the movie studios' willingness to pay high salaries to movie stars. C) The studio system that dominated the industry in the 1930s and 1940s no longer exists. The studio system allowed movie studios to sign actors to long-term contracts that kept salaries down. D) Agents of movies stars are effective in obtaining large salaries for their clients today. Few movie stars had agents to negotiate for them in the 1930s and 1940s.
China has a larger population than India and is expected to be the most populous nation in the world throughout the twenty-first century
Indicate whether the statement is true or false
The median-voter model attempts to explain
a. why law partners can seldom agree on the division of costs b. why, in a democracy, the preferences of the typical voter often will dominate other choices c. why democracies can evolve into dictatorships d. elections in which candidates present widely different platforms e. conditions under which majority rule is better than market exchange
Suppose the output of a firm hiring workers in a competitive labor market increases by three units when an additional worker is hired. This firm will hire more laborers if the market price of its product is $4 and the wage rate is $9 . [Hint: Marginal revenue product of a resource is equal to the product of marginal product of the resource and the marginal revenue of the firm.]
a. True b. False Indicate whether the statement is true or false