Assume Roger's income to spend on books and movie tickets is $48, and his budget constraint is represented by line B. What would cause his budget constraint to move to A?
A. Roger gets a raise at work.
B. Roger gets unlimited coupons for $2 off the price of a movie ticket.
C. The price of movie tickets increases to $8.
D. None of these changes would cause Roger's budget constraint to move from B to A.
B. Roger gets unlimited coupons for $2 off the price of a movie ticket.
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In the above figure, if the real interest rate is 4 percent, then there
A) there is a surplus of loanable funds. B) is equilibrium in the loanable funds market. C) the real interest rate will rise. D) the demand curve for loanable funds will shift rightward.
Refer to the above figure. Which one of the following statements is TRUE with regard to the economy depicted in the graph?
A. Starting from point A, this economy does not incur any opportunity cost in producing more wool. B. In moving from point A to point B, the economy is experiencing economic growth. C. Starting from point A, this economy does not incur any opportunity cost in producing more bread. D. In moving from point A to point B, the economy produces 30 additional bales of wool at an opportunity cost of 250 loaves of bread.
An oligopoly is a market situation in which
A. all the sellers act independently of the others. B. there are very few sellers and they recognize their strategic dependence on one another. C. there are many firms producing differentiated products. D. there is a single firm producing several varieties of a product.
Say’s Law implies that
a. production generates income, which is all spent to purchase what was produced. b. demand creates its own supply. c. markets do not clear. d. demand determines real output.