The budget constraint shows that
A) the consumer faces a trade-off in the consumption of goods.
B) the consumer can have as many goods as he wants.
C) as consumers spend more on one good, they spend more on others.
D) total income equals total spending on one good.
Answer: A
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Which of the following is the correct way to describe equilibrium in a market?
A. At equilibrium, demand equals supply. B. At equilibrium, quantity demanded equals quantity supplied. C. At equilibrium, market forces are no longer at work. D. Equilibrium is a tendency, a state of perpetual motion. E. Equilibrium is the best combination of price and quantity.
A decrease in taxes ____ aggregate demand through larger _____ by households
Fill in the blank(s) with correct word
Measuring the impact of the protection on the U.S. economy and on Harley-Davidson:
a. is very clear—it was a success. b. is very clear—it was a failure. c. is not as black and white as the numbers might show, but saving a profitable company at a low cost has some merit for the U.S. economy. d. should take into consideration that Harley-Davidson was a private firm with private stockholders. Most economists disagree with government efforts to save it from bankruptcy.
Which of the following is NOT a barrier to entry?
A) patents B) licenses C) economies of scale D) U.S. antitrust legislation