Hold the prices of goods, as well as Amy's preferences, constant. If Amy's income increases, then
a. both her indifference curves and budget constraint change.
b. her indifference curves change, but her budget constraint does not change.
c. her budget constraint changes, but her indifference curves do not change.
d. neither her indifference curves nor her budget constraint change.
c
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You want to purchase two umbrellas. The price is $40 per umbrella, 2 for $60, 3 for $75. What will be the marginal cost to you of buying a third umbrella?
A) $75 B) $25 C) $20 D) $15 E) $10
Does a subsidy to buyers affect the supply curve?
A. Yes, it shifts supply up by the amount of the subsidy. B. Yes, it shifts supply to the right by the amount of the subsidy. C. No, the quantity supplied will increase, but the supply curve does not move. D. No, the quantity supplied will decrease, but the supply curve does not move.
Ceteris paribus, a decrease in the U.S. price level will cause
a. an increase in U.S. exports. b. an increase in U.S. imports. c. the aggregate demand curve to shift to the right. d. the aggregate demand curve to shift to the left.
Capital, as economists use the term,
A. is the money the firm spends to hire resources. B. refers to things that have already been produced that are in turn used to produce other goods and services. C. is money the firm raises from selling stock. D. refers to the process by which resources are transformed into useful forms.