Refer to the above graphs. Which pairs of budget constraints represent only a decrease in income, but no change in the price of X and Y?
A. Graph A
B. Graph B
C. Graph C
D. Graph D
Answer: A
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Jason had $30 to spend on games and books. A game costs $5, while a book costs $3 . If he decides to purchase 5 games and 4 books, his consumption bundle lies _____
a. above his budget line b. below his budget line c. at the intersection of his indifference curve and his budget line d. at the point where his indifference curve is tangent to his budget line
If a firm collects $80 in revenue when it sells 4 units, $100 in revenue when it sells 5 units, and $120 in revenue when it sells 6 units, then one can infer the firm is a(n):
A. perfect competitor. B. oligopolist. C. monopolist. D. monopolistic competitor.
Hotelling's rule states that
a. The net price of a resource is constant b. The net price of a resource rises at a rate equal to the interest rate c. The net price of a resource declines at a rate equal to the interest rate d. The price of a resource depends on the allocation of property rights e. The price of a resource is efficient as long as all user costs are internalized
When the Federal Reserve sells government bonds to the public, this is an example of a(n):
A. open-market purchase. B. discount loan. C. open-market sale. D. bank panic.