Consumers allocate their budgets among bundles because
A) more is not always better.
B) bundles are the most efficient way to package goods and services.
C) consumers face choices and tradeoffs.
D) they want to minimize trips to the store.
C
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Refer to Figure 7.5. Which diagram represents isoquants for a Cobb-Douglas production function?
A. A
B. B
C. C
D. D
The following appeared in a newspaper article: "Inflation in the Lehigh Valley during the first quarter of [the year] was less than half the national rate... So, unlike much of the nation, the fear here is deflation-when prices sink so low that the CPI drops below zero Do you agree with the reporter's definition of deflation?
A. Yes. When prices fall too low, the CPI is negative B. Yes. Deflation is caused by a negative CPI C. No. Deflation is defined as a negative inflation rate D. No. Deflation occurs when the nominal interest rate is greater than the real interest rate
The 2001 and 2003 tax cuts of the George W. Bush administration each had provisions to
A. lower the earned income tax credit. B. raise tax rates at the upper end. C. raise tax rates at the lower end. D. increase (or speed up the already scheduled increase in) the child tax credit.
Which of the following statements regarding OPEC is false?
A) Because it sells a homogeneous product, since its formation in 1960 OPEC has been the clear leader when it comes to determining the price of crude oil. B) OPEC's membership includes countries from the Middle East, Africa, and South America. C) Over time, OPEC's ability to control the price of oil has been constrained by changes in consumer demand and increased production of oil by non-member countries. D) The cartel has not always been successful when it comes to preventing individual members from cheating on the agreed upon production quotas.