The figure above shows Sam's budget line. The vertical intercept of Sam's budget line is equal to
A) the quantity of coffee purchased if zero gasoline is purchased.
B) Pc/Y.
C) the quantity of gasoline purchased if zero coffee is purchased.
D) Pg/Y.
C
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The imposition of tariffs on imports results in deadweight (triangle) losses. These are
A) production and consumption distortion effects. B) redistribution effects. C) revenue effects D) efficiency effects. E) distortion of incentives.
The nominal GDP of Year 1 is
A) $800. B) $1050. C) $1900. D) $2400.
An asset's specificity can be measured in terms of the percentage of its cost that can be recovered if it is redeployed into its next most valuable use
Indicate whether the statement is true or false
If unemployment is the major problem in the economy, which of the following would be an appropriate monetary policy response?
a. decrease taxes b. decrease the discount rate c. sell government bonds d. all of the above