The budget line
A. has a positive slope.
B. is a vertical line.
C. shows the combination of goods that can be purchased at fixed prices and with a given income.
D. shifts to the left as income increases.
Answer: C
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If the Citrus Growers Association grows $1 million worth of oranges, sells $500,000 worth of oranges to consumers, uses the rest to make orange juice that is sold to consumers for $3 million, Citrus Grower's contribution to GDP is:
A. $3,500,000. B. $500,000. C. $4,000,000. D. $1,000,000.
Explain how the Fed's response to inflation works its way through the economy to ultimately affecting real GDP and the price level
What will be an ideal response?
Refer to Table 1-2. What is Thuy Anh's marginal cost if she decides to stay open for an extra three hours instead of two hours?
A) $0 B) $16 C) $25 D) $32 E) $45
Which of the following best approximates Okun's law?
A) a 1 percent increase in output leads to a 2 percent decrease in unemployment B) a 1 percent increase in output leads to a 1 percent decrease in unemployment C) a 2 percent increase in output leads to a 4 percent increase in unemployment D) a 2 percent increase in output leads to a 1 percent decrease in unemployment E) none of the above