Joe's income is $500, the price of food (F) is $2, and the price of shelter (S) is $100. Which of the following bundles is in Joe's opportunity set?
A) 50 units of food, five units of shelter
B) 200 units of food, two units of shelter
C) 100 units of food, one unit of shelter
D) 150 units of food, three units of shelter
C
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If tax revenues are $230 billion and the government's outlays are $235 billion, then the budget
A) surplus is $5 billion and government debt will increase by $5 billion. B) surplus is $230 billion and the budget deficit is $235 billion. C) deficit is $5 billion and government debt will remain the same. D) deficit is $5 billion and government debt will increase by $5 billion. E) deficit is $5 billion and government debt will decrease by $5 billion.
When raising taxes, the price effect tells us that the:
A. higher tax rate causes fewer units to be sold. B. government gets more revenue per units sold. C. government gets less revenue per unit sold. D. higher tax rate causes more units to be supplied.
A profit-maximizing firm in a monopolistically competitive market is characterized by which of the following?
a. marginal cost exceeds marginal revenue b. average revenue equals marginal cost c. price exceeds marginal cost d. All of the above are correct.
Which of the following is a tool of monetary policy?
A. Buying and selling government bonds B. Making loans to banks C. Setting reserve requirements D. All of the above are tools of monetary policy.