The slope of the budget constraint line is the
A) income of consumers divided by the price of each good.
B) ratio of this year's income to last year's income.
C) rate of exchange between the two goods.
D) ratio of different levels of income.
Answer: C
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Purchasing a season pass to the local symphony
A) is an example of first degree price discrimination. B) is an example of second degree price discrimination. C) is an example of third degree price discrimination. D) All of the above.
Left alone, with no government interference, a profit-maximizing firm will produce emissions
A) where the MSB curve crosses the MCA curve. B) at the vertical intercept of the MSB curve. C) at the horizontal intercept of the MSB curve. D) at the vertical intercept of the MCA curve. E) at the horizontal intercept of the MCA curve.
Appropriate fiscal policy in the U.S. in 2009 would attempt to
a. increase taxes. b. decrease aggregate supply. c. increase aggregate demand. d. decrease aggregate demand.
Which of the following is not a potential source of comparative advantage for China in the manufacturing sector?
A) Abundant low wage, low skill workers B) A large domestic market that can lead to scale economies C) Coastal areas with good logistics for international trade D) Abundant credit from China's government sector to set up manufacturing operations