A budget line is constructed to show
a. how consumers who budget their expenditures achieve more satisfaction than those who do not.
b. the set of all baskets that the consumer can afford, given prices and his or her income.
c. the set of all baskets that the consumer would be willing to purchase given various prices for the goods in the basket.
d. the set of all baskets that the consumer considers equally desirable.
b. the set of all baskets that the consumer can afford, given prices and his or her income.
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Why should productivity be measured?
A. To find new ways to meet customer needs B. To see whether the business's objectives are being met C. To determine the best ways to invest company profits D. To locate new
When a Canadian citizen enjoys military protection in Canada without contributing to the cost of Canada's defense budget, then
A. this citizen receives no benefits if Canada is attacked. B. this Canadian citizen is a free rider. C. Canada is a free rider. D. Canada's defense budget will run out of funds.
An import quota will
A) lead to a shift of the demand curve. B) leave the equilibrium price unchanged and increase the quantity sold. C) limit the amount of a foreign good that can be brought into the United States. D) limit the amount of a good local producers can make.
Which of the following events would increase the four-firm concentration ratio in a milk industry with six firms?
a. The two largest milk producers merge. b. The largest milk producer buys an ice cream-making plant. c. The largest milk producer lures customers away from the second-largest producer. d. The four largest milk producers collusively fix prices.