In the figure above, if the government provides a subsidy to colleges of $6,000 per student per year, what is the tuition?
A) $10,000 per year
B) $12,000 per year
C) $8,000 per year
D) $6,000 per year
C
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If prices of both horizontal and vertical goods increase by 50%,
A) budget constraint will be unchanged. B) slope of the budget constraint stay the same. C) slope of the budget constraint will decrease. D) budget constraint will shift outward in a parallel fashion.
There is no such thing as a free lunch." This is an example of which economic concept?
A. Maximization B. Trade-offs C. Basic necessities D. Income effect
If the Fed sells bonds and, thereby, unexpectedly shifts to a more restrictive monetary policy, in the short run, the primary impact of this policy will tend to
a. increase inflation. b. reduce unemployment. c. increase real output. d. increase real interest rates.
A market shortage occurs if the:
A) price is above the equilibrium price. B) price is equal to the equilibrium price. C) equilibrium price is above the current price. D) equilibrium price is below the current price.