If your income increases, what is the effect on your budget line?
What will be an ideal response?
Your budget line will shift outward and not change its slope.
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If the relative price of S in terms of T is 2 and S has a nominal price of $1, then the nominal price of T is
A) $2. B) 50 cents. C) 1/2 S. D) Need more information to answer.
In an economic model, an endogenous variable is
A) a stand-in for more complicated variables. B) determined by the model itself. C) determined outside the model. D) a variable that has no effect on the workings of the model.
Overall NAFTA has resulted in
A. Very little change in any of the three countries. B. Massive unemployment and recessions. C. Accelerated economic growth and reduced inflationary pressures in Canada, Mexico, and the United States. D. Increased economic growth and employment in Mexico at the expense of the United States.
If a used-car dealer suffers economic losses, then
A) as a group, its customers were necessarily made worse off. B) as a group, its competitors necessarily enjoyed economic profits. C) it must pass its losses onto its future customers. D) none of the above is true.