Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is AD. If her income decreases, her new budget constraint is
A. EF.
B. BD.
C. CD.
D. not shown on this graph.
Answer: D
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Suppose that the demand for electricity has been found to be price inelastic. The most likely explanation for this finding is that:
A. electricity is a luxury good. B. electricity is sold in a monopoly market. C. the fraction of income spent on electricity is large. D. few substitutes for electricity exist.
According to the KOF Swiss Economic Institute's globalization indices for the world, globalization
A) has been on a downward trend. B) has been constant since 1970. C) was on an upward trend in the 1970s and 1980s, but has more recently been on a downward trend. D) has been on an upward trend.
If the imports are no longer 0, then
What will be an ideal response?
A country is said to be experiencing inflation when
A. total output is rising over time. B. total output is falling over time. C. prices of most goods and services are falling over time. D. prices of most goods and services are rising over time.