A change in the price of one good results in a rotation of the budget line, so that it is steeper or flatter.
Answer the following statement true (T) or false (F)
True
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What, according to the textbook, accounts for the federal budget surplus in the late 1990s?
A) A move toward virtue on Capital Hill B) Strong economic growth during that period C) Huge increases in tax rates D) A successful beggar-thy-neighbor strategy
Specialization of productive activity between men and women might explain why
A) a married woman earns less than a married man. B) a never-married man earns more than a never-married woman. C) a never-married man earns the same as a married man. D) None of the above answers is correct.
Refer to Table 14-1. What is the Nash equilibrium in this game?
A) Star Connections increases its advertising budget, but Godrickporter does not. B) There is no Nash equilibrium. C) Both Godrickporter and Star Connections increase their advertising budgets. D) Godrickporter increases its advertising budget, but Star Connections does not.
The costs to firms of changing prices are called
A) menu costs. B) redistribution costs. C) anticipation costs. D) money illusion costs.