If prices and income in a two-good society double, what will happen to the budget line?
A) The intercepts of the budget line will increase.
B) The intercepts of the budget line will decrease.
C) The slope of the budget line may either increase or decrease.
D) Insufficient information is given to determine what effect the change will have on the budget line but we know society is worse-off.
E) There will be no effect on the budget line.
E
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According to Keynes,
A) prices decline as inventories increase. B) prices increase as inventories increase. C) prices decrease as inventories decrease. D) prices are sticky and will probably not respond to a change in inventories.
In the above figure, the opportunity cost of moving from producing 75 guitars and 25 ukuleles to producing 50 guitars and 50 ukuleles is
A) 25 ukuleles. B) 50 guitars. C) 100 guitars. D) 25 guitars.
What would most likely increase the demand for peanut butter?
What will be an ideal response?
Suppose the MC Hammer Company produces hammers. The number of hammers it can produce each hour depends on the number of workers it hires, as shown in the accompanying table. In addition, each hammer can be sold for $2 more than the cost of the materials needed to produce it.Number of workers per hourNumber of hammers per hour00120236348456560 What is the value of the marginal product of the 2nd worker hired each hour?
A. $36 B. $16 C. $32 D. $72