Suppose a consumer only purchases food and clothing, and food is plotted along the horizontal axis of the consumer's indifference map
If the price of clothing increases and the price of food and income do not change, then the budget line changes by rotating: A) counter-clockwise about the fixed vertical axis intercept.
B) clockwise about the fixed vertical axis intercept.
C) counter-clockwise about the fixed horizontal axis intercept.
D) clockwise about the fixed horizontal axis intercept.
E) none of the above
C
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The real interest rate is the rate at which borrowers or lenders ________ to make transactions when issuing or receiving loans
A) are required B) refuse C) expect D) can only obtain from a financial intermediary
If Mexico has a comparative advantage in oil compared to the U.S., it means that the opportunity cost of producing oil in Mexico is
a. relatively high b. relatively low c. zero d. infinite e. higher than in the U.S.
Which of the following is not a reason that the findings of cost-benefit analyses on public goods are only rough approximations?
a. Without prices, it is difficult to be sure how much people really value a good. b. Analysts can't be sure that the respondents to surveys are telling the truth. c. Analysis must include not only the cost of building the project but also the cost of maintenance, if any. d. People value goods differently if they are publicly provided rather than privately provided.
Curly and Moe are considering living alone or being roommates and splitting the rent for the next twelve months. If they live alone, they each rent a one bedroom, one bath apartment for $500 per month, while if they are roommates, they can split a two bedroom, one bath apartment for $800 per month. The one difficulty they have is that Moe snores very loudly. Curly estimates the cost of poor sleep due to Moe's snoring at $150 per month. Moe could obtain a snore-eliminating device for $50 per month. Curly would be willing to pay ________ per month to eliminate Moe's snoring.
A. up to $150 B. nothing C. exactly $50 D. no more than $100