With respect to consuming food and shelter, two consumers choose the same bundles and both claim to be in equilibrium. We therefore know that
A) they both have the same MRS of food for shelter.
B) they both face the same prices.
C) they both face the same budget lines.
D) None of above.
D
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Workers and firms both expect that prices will be 3% higher next year than they are this year. As a result,
A) the short-run aggregate supply curve will shift to the left as wages increase. B) the purchasing power of wages will rise if wages increase by 3%. C) workers will be willing to take lower wages next year. D) aggregate demand will increase by 3%.
Which of the following does the U.S. president appoint and the U.S. Senate confirm?
a. members of the Board of Governors and regional Federal Reserve Bank Presidents. b. members of the Board of Governors but not the regional Federal Reserve Bank Presidents. c. the regional Federal Reserve Bank Presidents, but not members of the Board of Governors. d. neither members of the Board of Governors nor regional Federal Reserve Bank Presidents.
Brian is paid monthly and typically takes $500 of his pay in cash to spend throughout the month, and the rest he leaves in an interest-bearing checking account. With the recent inflation, Brian finds it necessary to go to the bank every week, withdrawing $125 each time, so that his money can earn interest for as long as it can before Brian needs to withdraw it. The added hassle of going to the bank more often in response to inflation is called a:
A. tax distortion. B. transactions cost. C. shoe-leather cost. D. menu cost.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher