Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5Refer to Figure 6.5. Molly's budget constraint is BD. If the price of CDs increases, her new budget constraint becomes

A. EF.
B. BD.
C. AD.
D. CD.


Answer: C

Economics

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In an economy with no income taxes or imports, the marginal propensity to consume is 0.80. The expenditure multiplier is

A) 1.25. B) 10.0. C) 0.80. D) 5.00. E) 0.20.

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Specialization occurs because

A) society trades current consumption for future consumption. B) the production possibilities curve tends to be linear. C) people have different skills. D) society produces made the production possibilities curve.

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When a voter chooses to remain ignorant when the opportunity costs of gathering information outweigh the benefits, it is called:

A. irrational voting. B. trigger mechanisms. C. rational ignorance. D. instinct theorem.

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Which country most recently experienced hyperinflation?

a. Germany b. Zimbabwe c. Chile d. all of the above

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