If the graph shown represents Donna's budget constraint, and the price of earrings were to decrease, the slope of Donna's budget constraint would become:
A. steeper, reflecting the fact that hairbands are now relatively less expensive.
B. flatter, reflecting the fact that hairbands are now relatively more expensive.
C. steeper, reflecting the fact that earrings are now relatively less expensive.
D. flatter, reflecting the fact that earrings are now relatively more expensive.
C. steeper, reflecting the fact that earrings are now relatively less expensive.
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"Less demand causes lower prices, and lower prices cause more demand." The above statement shows
A) economic theory can be used to prove just about anything. B) everything depends on everything else. C) prices fluctuate in a free-market situation. D) the speaker has confused himself by saying demand in the first half of the statement when he meant quantity demanded. E) the speaker has confused himself by saying demand in the second half of the statement when he meant quantity demanded.
Suppose a bond has a coupon of $40, face value of $1000, and current price of $950. What is the coupon rate? What is its current yield? Report a percentage with two decimal places
What will be an ideal response?
An economist who favored expanded government would recommend:
A. tax cuts during recession and reductions in government spending during inflation. B. tax increases during recession and tax cuts during inflation. C. tax cuts during recession and tax increases during inflation. D. increases in government spending during recession and tax increases during inflation.
Which of the following is not an example of Pareto optimality?
A. The city council approves a tax increase on all residents in order to make repairs to one remote residential street. B. The Beauregard twins eagerly switch cell phone cases with each other. C. Despite complaints from members, Harmony Industries builds a sewage treatment plant next to a country club. D. Timmy tricks Jonathan into trading a genuine Brooks Robinson baseball card for a fake Pete Rose baseball card.