In a budget line, a decrease in the price of the good on the y axis is graphically represented by:
A. a rightward parallel shift of the budget line.
B. a steeper slope of the budget line.
C. a leftward parallel shift of the budget line.
D. a flatter slope of the budget line.
Answer: B
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Based on the table above, the cost of the base period market basket in 2013 is
A) $3,300. B) $4,885. C) $4,650. D) $3,885. E) None of the above answers is correct.
Which of the following is not an advantage to an insurance company of insuring a large group of people for health insurance?
A) When all group members pay the premium, the problem of adverse selection is reduced. B) The characteristics of a large group are likely to reflect those of the entire population. C) When all group members pay the premium, the problem of moral hazard is reduced. D) It is easier to accurately predict the number of claims for a group than for an individual.
Macroeconomic equilibrium requires
A) equilibrium in the goods market. B) equilibrium in the money market. C) equilibrium in both the goods and money markets. D) equilibrium in neither the goods nor the money market.
In the monetary small open-economy model with a fixed exchange rate, an increase in the foreign price level
A) increases the domestic money supply and increases the domestic price level. B) increases the domestic money supply and decreases the domestic price level. C) decreases the domestic money supply and increases the domestic price level. D) decreases the domestic money supply and decreases the domestic price level.