Assume Claudia's budget constraint is demonstrated by line A in the graph shown. Which of the following would cause Claudia's budget constraint to shift to line C?
A. Claudia's income increased.
B. Claudia's income decreased.
C. Claudia's preferences for these two goods decreased.
D. The prices of both goods have gone down.
B. Claudia's income decreased.
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The flypaper effect is _____
a. that government grants get shifted around to other uses b. that government grants get spent on what they were intended to be spent on c. that government grants are used to lower tax rates d. that government grants are not used by local governments
Refer to Scenario 5.4. What is the variance of the investment?
A) -75 B) 275 C) 3,150 D) 4,637.50 E) 8,125
The corporate form of business organization
a. is chosen by more firms than any other form of organization in the United States b. gives firm owners limited liability c. generates less than half of the output in the U.S. economy d. combines the limited liability of the partnership with the personal control of the sole proprietorship e. is the least complex form of business organization
There have been no major banking panics in the U.S. since the creation of the Federal Reserve System
a. True b. False