The endpoints (horizontal and vertical intercepts) of the budget line:
A) measure its slope.
B) measure the rate at which one good can be substituted for another.
C) measure the rate at which a consumer is willing to trade one good for another.
D) represent the quantity of each good that could be purchased if all of the budget were allocated to that good.
E) indicate the highest level of satisfaction the consumer can achieve.
D
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If a nation specializes in activities in which opportunity costs are the lowest and then trades with other nations, it is most likely to:
a. have a higher standard of living for its citizens than it would if it did not specialize and then trade. b. have a lower standard of living for its citizens than it would if it did not specialize and then trade. c. create as much wealth for its citizens as it could if it did not specialize and then trade. d. benefit in the short run but incur heavy loss in the long run. e. incur heavy loss in the short run and eventually cease production in the long run.
In equilibrium, all traded foods sell at the same price internationally. If the same goods are expressed in their home prices, then the ratio of prices is equal to
A) 1 B) the exchange rate between the two currencies C) the real exchange rate between the two currencies D) none of the above
Based on the pie chart showing federal government revenue, the two sources that combine to provide roughly 80% of federal revenue are ______.
a. individual income tax and corporate income tax
b. corporate income tax and social insurance tax
c. social insurance tax and individual income tax
d. miscellaneous other tax and social insurance tax
No nation needs default on debts that call for repayment in its own currency. However, Russia astounded the financial world in 1998 by choosing to default on its
A. dollar denominated debt. B. ruble denominated debt. C. British sterling pounds denominated debt. D. none of these.