Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Figure 6.6Refer to Figure 6.6. Bill's budget constraint was originally EF. If his new budget constraint is CD, then his income
A. did not change but the price of black beans decreased.
B. did not change but the price of black beans increased.
C. decreased.
D. increased.
Answer: C
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Katy has an ailing and wealthy, but miserly, parent. The parent has told Katy that if she takes care of him until he dies, then she will get $100,000 in inheritance
Katy knows that there is only a 50-50 chance that her father will leave her the full amount or nothing. To take care of her father, she has to take a job that pays $30,000 where her current job pays her $70,000 per year. If her father is expected to pass away in 1 year, what is Katy's expected wealth if she takes care of her father? A) $130,000 B) $90,000 C) $80,000 D) $70,000
The Coase Theorem states that there is a single unique way to assign property rights if the private sector is to achieve environmental efficiency
a. True b. False Indicate whether the statement is true or false
Some of the inaccuracies in measuring GDP are attributable to
a. monopolization b. ignoring production by U.S.-owned plants abroad c. the underground economy and quality changes d. tax evasion and inflation e. short-term changes in spending
In general, demand curves for necessities tend to be price elastic
a. True b. False Indicate whether the statement is true or false