When a consumer is at his or her best affordable point, the budget line
A) is flatter than the highest attainable indifference curve.
B) is tangent to the highest attainable indifference curve.
C) is steeper than the highest attainable indifference curve.
D) does not touch the highest attainable indifference curve.
B
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What are fiscal and monetary policies? Do they have an immediate effect on the AD curve or the SAS curve?
What will be an ideal response?
Last year a country had $700 billion of saving and $900 of investment. This year it had $1000 billion of saving and $800 billion of investment. By how much did net capital outflow change? By how much did net exports change? How is it possible for a country to have saving that is greater than investment?
A consumer has been buying 3 magazines and 2 books a month for many months. The price of books then increases. To attain a new optimum, the consumer will
A) buy more magazines because they are now relatively more valuable than they were before, while continuing to buy the same number of books. B) buy more books because they are now relatively more valuable than they were before. C) buy the same number of books and magazines as before because they provide different types of utility. D) buy fewer books than before because they are relatively more expensive than they were before.
Refer to the information provided in Table 21.4 below to answer the question(s) that follow. Table 21.4
Refer to Table 21.4. The value for national income in billions of dollars is
A. 890. B. 910. C. 940. D. 970.