Which of the following statements is true?
A) A budget constraint is the same for a consumer at all levels of income.
B) A budget constraint is a function of the income of the consumer and not the prices of the goods and services available for consumption.
C) A budget constraint quantifies the trade-offs that economic agents face while making decisions.
D) A budget constraint is based on the minimum amount of money that an economic agent can spend on goods and services.
C
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What are the accurate coordinates of the new equilibrium price?
a. P1; Q2
b. P1 Q1
c. P2; Q1
d. P2; Q2
Briefly discuss two factors that have increased government expenditures in recent decades.
What will be an ideal response?
If only a small percentage of used computers on the market are plums (high-quality), then the asymmetric information concerning the quality of used computers has generated a ________ market.
A. thin B. weak C. tight D. competitive
Supply-side economics focuses on tax cuts to stimulate
A. aggregate supply by increasing production. B. government spending. C. household consumption. D. aggregate demand by reducing saving.