The possible combinations of goods that can be purchased with a specific income are called the
A) budget constraint.
B) indifference map.
C) marginal rate of substitution.
D) income-consumption curve.
Answer: A
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What will be an ideal response?
Income mobility
a. is a term used to characterize the ease of establishing residence or a business in a new area of the country. b. has increased in recent years because of reductions in transportation cost. c. is the term used to describe the movements up and down the economic ladder. d. is present only when the general level of prices is rising.
The frictional unemployment rate is 2.5 percent, the structural unemployment rate is 3.1 percent, and the economy's current unemployment rate is 5.6 percent. The economy is in
A) an inflationary gap producing more than Natural Real GDP. B) a recessionary gap producing more than Natural Real GDP. C) an inflationary gap producing Natural Real GDP. D) a recessionary gap producing less than Natural Real GDP. E) long-run equilibrium.
Normative economics involves
A) a statement of fact. B) a statement of "what should be." C) a statement of "what is." D) a statement that is purely descriptive.