If the budget line rotates, then we know that
A) income has changed.
B) their has been a change in the consumer's tastes.
C) the price of one of the goods had changed.
D) the consumer was not maximizing their utility.
Answer: C
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What type of intrinsic value or backing does U.S. currency have today?
A) none B) government bonds C) gold D) silver
Rufus runs a skunk-skinning service in West Virginia. He employs skinners at a wage rate of $240 a week for each one. He leases the shack where his workers work for $200 per week. The rent is fixed for the next two years
Last week his 10 employees managed to skin a total of 300 skunks. a. What is the average product of labor for Rufus's company? b. What is Rufus's total variable cost per week? c. What is the average variable cost for Rufus's company? d. If Rufus adds his brother Jethro to his staff, at a wage rate of $240 a week, and his company can now skin 310 skunks per week, what is Rufus's new average variable cost?
If the required reserve ratio is .2 and reserves initially decline by $25, demand deposits can decline by
A) $125. B) $50. C) $25. D) $5.
When there are positive externalities associated with the consumption of a good, we can expect the market:
a. demand curve to lie above the social demand curve. b. demand curve to lie below the social demand curve. c. supply curve to lie above the social supply curve. d. supply curve to lie below the social supply curve. e. demand curve to lie below the social supply curve.