The budget line shows:
A. the amount of product A that a consumer is willing to give up to obtain one more unit of
product B.
B. all possible combinations of two goods that can be purchased, given money income and
the prices of the goods.
C. all equilibrium points on an indifference map.
D. all possible combinations of two goods that yield the same level of utility to the consumer.
Answer: B
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If the supply curves for the following goods were plotted, they all would slope upward except one. Which is the exception?
a. red Corvettes b. yogurt c. diamond rings d. original copies of the Mona Lisa e. wine from Greece
A firm's value added is
a. the revenue it receives by selling its output b. usually not included in GDP c. the revenue it receives for its output, minus the cost of all the intermediate goods it buys d. the revenue it receives for its output, plus the cost of all the intermediate goods it buys e. the revenue it receives for its output, minus the taxes that it pays
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.
Briefly explain how import tariffs can be part of a set of government policies to increase national well-being for small developing countries where government revenue is difficult to obtain by other means such as an income or sales tax.
What will be an ideal response?