The slope of the budget line
A. always equals 1.
B. equals income divided by price.
C. equals the ratio of the prices.
D. decreases as we move from left to right.
Answer: C
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Last year, the unemployment rate was 4 percent and the inflation rate was 3 percent. If the natural rate of unemployment is 3 percent, how do you expect inflation to change?
What will be an ideal response?
Factors affecting medical care demand include
a. health status. b. demographic characteristics. c. economic standing. d. physician factors. e. all of the above.
Crowding out refers to the situation in which:
a. borrowing by the federal government raises interest rates and causes firms to invest less. b. foreigners sell their bonds and purchase U.S. goods and services. c. borrowing by the federal government causes state and local governments to lower their taxes. d. increased federal taxes to balance the budget causes interest rates to increase and consumer credit decreases.
All of the following are economic functions of the government EXCEPT
A. providing public goods. B. providing a legal system. C. promoting competition in the market. D. determining the wage rate for most jobs.