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 EF. If her income decreases while the price of the goods are unchanged, her new budget constraint could be
A. CD.
B. BD.
C. AD.
D. Her new possible budget constraint is not shown on this graph.
Answer: A
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Which of the following statements concerning economic models is FALSE?
A) Economic models must provide usable predictions. B) Economic models are based on pure fact and no assumptions. C) Economic models are tested empirically. D) Economic models relate to how people behave.
The prisoner's dilemma shows that
A) players are better off if they act independently. B) monopolies are beneficial to society. C) people will always cheat. D) players would be better off if they cooperated.
The purchasing power parity (PPP) theory suggests the prices of identical items will equalize internationally. An illustration that supports this theory is the fact that the price of a McDonald's "Big Mac" is the same around the world
a. True b. False
Most economists and policy makers decided in 2007-2010 that reducing unemployment was the main national priority
a. True b. False Indicate whether the statement is true or false