A change in the slope of a budget line reflects:
A. a change in the marginal rate of substitution.
B. a change in the consumer's preferences.
C. a change in consumer income.
D. a change in the relative prices of the two goods.
Answer: D
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The implementation of new production methods by managers, such as the "just-in-time" inventory system, increases:
A. the quantity of human capital. B. the share of the population employed. C. the unemployment rate. D. average labor productivity.
In the short run, with predetermined prices, when output is greater than aggregate expenditure, firms will:
A. increase aggregate expenditure. B. increase production. C. reduce production. D. decrease aggregate expenditure.
In the short run, an increase in the price level causes which of the following: a. A rightward shift in the aggregate demand curve
b. A leftward shift in the short-run aggregate supply curve. c. A rightward shift in the short-run aggregate supply curve. d. A movement upward along the short-run aggregate supply curve.
When a country that imports a particular good imposes a tariff on that good,
a. producer surplus increases and total surplus increases in the market for that good. b. producer surplus increases and total surplus decreases in the market for that good. c. producer surplus decreases and total surplus increases in the market for that good. d. producer surplus decreases and total surplus decreases in the market for that good.