Assume Px is the price of good X on the horizontal axis and Py is the price of good Y on the vertical axis. The slope of the budget line equals:
a. Py / PxY.
b. PyQy / Px Qx.
c. (1 ? Py / Px).
d. Px / Py.
d
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Lydia enjoys going to the theater to see Broadway musicals. The following demand schedule shows Lydia's willingness to pay for theater tickets in a year. Ticket Price Number of Tickets $90 1 $80 2 $70 3 $60 4 $50 5 $40 6 If the price of tickets to Broadway musicals equals $50, Lydia's consumer surplus will be:
a. $350. b. $300. c. $250. d. $100.
Activists believe that
a. the M1 money supply should be increased at a steady rate annually. b. taxes should be increased during a recession in order to balance the federal budget. c. the economy's self-correcting mechanism, if not stifled by perverse policies, will prevent prolonged periods of high unemployment. d. discretionary changes in macroeconomic policy can help smooth the business cycle of a market economy.
An export is a product:
A. produced in and purchased by residents of the home country. B. produced in and sold to the residents of a foreign country. C. produced in the home country and sold in another country. D. produced in a foreign country and purchased by the residents of the home country.
Why is efficiency desirable?
A) It results in an equal distribution of income. B) It results in the highest prices for the goods and services produced. C) It makes best use of the available resources. D) It is the most politically popular solution.