Suppose good X is on the horizontal axis, good Y is on the vertical axis, and the slope of an individual's budget line is -2. Which of the following is true??
a. Good Y is twice as expensive as good X
b. ?The consumer gives up two units of good Y for each unit of good X she purchases.
c. ?The opportunity cost of good X is one half of a unit of good Y.
d. ?All of the above are correct.
Ans: b. ?The consumer gives up two units of good Y for each unit of good X she purchases.
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Changes in demand will often be met with changes in output rather than changes in prices because of formal and informal contracts
Indicate whether the statement is true or false
Refer to the figure above. If there is downward wage rigidity in the market, what will be the unemployment in the market after the demand curve shifts to LD2?
A) 20 units of labor B) 5 units of labor C) 10 units of labor D) 15 units of labor
Two candidates are running for election as mayors of New York City that was recently impacted by Superstorm Sandy. In their election platforms, both candidates supported spending very similar amounts on hurricane protection
This similarity is most likely the result of A) both candidates necessarily having the same preferences towards risk and protection. B) the Principle of Minimum Differentiation. C) both the candidates realize that hurricane protection is a public good. D) politicians only take efficiency into account and hence all candidates will suggest the efficient outcome.
A clear conclusion from offshoring debates and analyses is that:
a. It has significant potential to redistribute income from labor to businesses. b. Its effect is to increase unemployment in the nation from which offshoring takes. c. Its effect is always to decrease GDP in the nation from which offshoring takes. d. All of the above are clear conclusions from these debates and analyses.