The above figure shows Jane's budget line and two of her indifference curves. Which of the following happens to Jane's budget line if there were an increase in her monthly dining-out budget?
A) It would bend toward the origin, becoming more convex.
B) It would bend away from the origin, becoming more concave.
C) It would shift rightward and not change its slope.
D) It would shift leftward and not change its slope.
C
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Cash payments to a steel mill for steel used in production of automobiles would be an example of
a. sunk costs b. fixed costs c. explicit costs d. implicit costs e. entrepreneurial costs
Answer the following statements true (T) or false (F)
1. All members of the European Union are members of the Economic Monetary Union. 2. The United States exports more to the Economic Union than it imports. 3. Beginning in 2002, Economic Monetary Union members no longer printed their own money. 4. The French franc is the common currency of the Economic Monetary Union. 5. The General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization (WTO). 6. If Mexico levies an import quota on U.S. cars, the price of automobiles in the United States is likely to rise. 7. In a large and diversified economy like the United States, international trade usually hurts more people domestically than it helps.
In the long run, a monopolistically competitive firm earns small economic profits.
Answer the following statement true (T) or false (F)
A movement upward and to the right along a supply curve is called a(n)
a. increase in supply. b. decrease in supply. c. decrease in quantity supplied. d. increase in quantity supplied.