Refer to the figure above. A change in the budget constraint from B1 to B2 indicates:
A) an increase in the price of sweaters.
B) a decrease in the price of sweaters.
C) an increase in the consumer's income.
D) a decrease in the consumer's income.
B
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According to the circular flow model, expenditures by one person translate:
A. directly into income for someone else. B. indirectly into the value of that person's time. C. directly into his or her income. D. indirectly into the household's budget.
Suppose that a firm in an industry subject to diminishing returns to scale is initially in long run equilibrium. Which of the following will not be part of the industry adjustment process to a permanent increase in demand? a. Some firms will temporarily make economic profits
b. Some new firms will enter. c. The long run equilibrium price will be higher than the initial equilibrium price. d. All of the above will be consequences.
The growth rate of total output equals
A. The growth rate of the labor force plus the growth rate of productivity. B. Gross investment minus depreciation. C. Real GDP per worker. D. Real GDP per capita growth rate.
Who is more likely to offer a money-back guarantee: a seller of a lemon or a seller of a plum? Why?
What will be an ideal response?