If a household's income rises by 30%, its budget constraint will
A. shift out parallel to the old one.
B. shift in parallel to the old one.
C. pivot at the Y-intercept.
D. be unaffected.
Answer: A
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Which of the following hypotheses about voter behavior have been advanced in public-choice literature?
a. Voters are myopic b. Unemployment is more likely to result in vote loss than is higher inflation c. Deficit bias of the budget process d. Both a and c e. All of the above
A compensating wage differential is
a. the difference between the wage of an individual working in favorable conditions and the wage of an individual working in unfavorable conditions b. compensation paid to an individual for working in a less desirable environment c. premium paid to a security holder to compensate him for bearing a higher risk d. Only A&B
According to the international trade theory, a country should import goods in which it has an absolute advantage
a. True b. False Indicate whether the statement is true or false
Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000 . the firm's marginal cost equals $15 and its average total cost equals $11 . The firm sells its output for $12 per unit. At Q = 999, the firm's total cost amounts to
a. $10,985. b. $10,990. c. $10,995. d. $10,999.