Consumer theory provides the foundation for understanding demand curves because
a. each point on a demand curve represents an optimal choice point.
b. consumers purchase more inferior goods than normal goods.
c. increases in income cause the budget constraint to rotate inward along one axis, which changes the consumer's purchases.
d. increases in income cause the budget constraint to rotate outward along one axis, which changes the consumer's purchases.
a
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Peg's Manicure Manor did 4,000 sets of nails in 2015 and 4,500 sets of nails in 2016. The price of a set of nails was $20 in 2015 and $22 in 2016. If 2015 is the base year, Peg's contribution to nominal GDP in 2015 was ________ and in 2016 was ________.
A. $80,000; $99,000 B. $88,000; $90,000 C. $80,000; $90,000 D. $80,000; $88,000
Which of the following shifts the demand for loanable funds curve leftward?
A) a fall in the real interest rate B) a rise in the real interest rate C) a decrease in the taxes paid by the business D) a decrease in the expected profit
Refer to Figure 24-2. Ceteris paribus, an increase in the expected future price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
If marginal profit is negative when the firm produces one more unit, then the firm is currently maximizing profits.
Answer the following statement true (T) or false (F)