If food is measured on the horizontal axis of a budget line diagram, and clothing is measured on the vertical axis, the slope of the budget line
a. may be positive if the price of clothing is high enough
b. may be positive if the price of food is high enough
c. may be positive if income is large enough
d. equals the maximum consumption of food divided by the maximum consumption of clothing times -1
e. equals the maximum consumption of clothing divided by the maximum consumption of food times -1
E
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A reduction in nominal wages will cause which of the following?
A) a leftward shift in the short-run aggregate supply curve to shift to the left B) a movement along the short-run aggregate supply curve C) a shift of both the short-run and long-run aggregate supply curves D) a rightward shift in the short-run aggregate supply curve
The efficient markets hypothesis suggests that investors
A) should purchase no-load mutual funds which have low management fees. B) can use the advice of technical analysts to outperform the market. C) let too many unexploited profit opportunities go by if they adopt a "buy and hold" strategy. D) act on all "hot tips" they hear.
If a union succeeds in forcing employers in a perfectly competitive product market to increase wages above the equilibrium level, then the level of unemployment
A) will increase. B) will remain constant. C) will decrease. D) may increase or decrease.
There are two kinds of changes in net taxes: First, net taxes can change if the government changes its tax or transfer policies. Second, net taxes change automatically as income rises and falls, without any change in policy. The _________ kind of change sets off the multiplier process, while the _________ kind of change occurs during the multiplier process
a. first; first. b. first; second. c. second; first. d. second; second. e. None of the above.