An outward, parallel shift in the budget line indicates that
a . the consumer's income has risen.
b. the consumer's demand for the good on the horizontal axis has risen.
c. the price of the good on the horizontal axis has fallen.
d. all commodity prices have simultaneously risen.
a . the consumer's income has risen.
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Which of the following is a macroeconomic question?
A) Why did a leading computer manufacturer establish call centers in India? B) Should the government put a tax on alcohol in an attempt to assist in the funding of support groups like Alcoholics Anonymous? C) Should we have a constitutional amendment requiring the government to implement a national consumption tax to replace the current income tax? D) Why does a pharmaceutical manufacturer try to lower its production costs?
Under a flexible exchange rate system, the rate that equates demand and supply in the exchange rate market also equates the
a. value of the nation's merchandise exports with the value of its merchandise imports. b. value of the nation's purchases of goods, services, and assets from foreigners with the value of the nation's sales of these items to foreigners. c. debit and credit items on current account transactions. d. debit and credit items on capital account transactions.
Which of the following is a characteristic of monopolistic competition?
A. Standardized product B. A relatively small number of firms C. Absence of non price competition D. Relatively easy entry
Technological advance is very tightly intertwined with:
A. Capital formation B. Household consumption C. Government spending D. Population growth