If all consumers are price-takers facing the same prices, then their budget lines will all have the same slope.
Answer the following statement true (T) or false (F)
True
Rationale: The slope of the budget constraint is -p1/p2 --- i.e. it is made up solely of prices. If those are the same for all consumers, then the slope is the same for all consumers.
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Adverse selection refers to the
A) use of statistical discrimination in making loans. B) possession of information by one party in a financial transaction not known by the other party. C) likelihood that a potential borrower may use the funds that he receives for unworthy, high risk projects. D) possibility that the borrower may engage in riskier behavior after the loan is obtained.
Milky Moo and Mega Cow are the only sellers of milk. Milky Moo's supply function is QsMMoo = 12P - 6 at prices above $0.50 and zero at prices below $0.50. Mega Cow's supply function is QsMCow = 9P - 3 at prices above $0.33 and zero at prices below $0.33. At a price of $0.45:
A. the market supply of milk is between 9 and 10 units. B. the market supply of milk is between 4 and 5 units. C. the market supply of milk is between 5 and 6 units. D. the market supply of milk is between 1 and 2 units.
Which of the following are examples of job amenities?
a. a child-care center at work b. a pleasant view c. a workplace gymnasium d. all of the above
In 2010, the percentage of all U.S. families officially considered to be in poverty was approximately
a. 5 percent. b. 11 percent. c. 22 percent. d. 31 percent.