Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. AC represents Tom's budget constraint. Point D then represents a point that is
A. available, but at which he does not spend all his income.
B. not available because it represents a combination of hamburgers and hot dogs that he cannot purchase with his income.
C. an available option, as Tom is just spending all of his income.
D. in his opportunity set but not on his budget constraint.
Answer: B
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When the economy moves from point A to B in the above table, the opportunity cost of a computer in terms of televisions is
A) 10. B) 2.5. C) 2. D) 0.5.
A study of consumers in an area found that as family income increased from $25,000 per year to $35, 000 per year, other factors held constant, the number of houses purchased increased from 7,000 per year to 11,000 per year. This finding indicates an income elasticity of demand coefficient for housing over this family income range of:
a. 0.22. b. 0.75. c. 1.33. d. 4.50.
If workers begin to expect more inflation in the future, then we would expect that the:
A. short-run aggregate supply curve will shift up (to the left). B. aggregate demand curve will shift left. C. short-run aggregate supply curve will shift down (to the right). D. short-run aggregate supply curve will not shift.
In the balance of payments, any transaction that leads to a receipt by a resident of a country or its government is a(n)
A) asset. B) minus item. C) deficit item. D) surplus item.