If the quantity of hamburgers is measured along the horizontal axis and the quantity of movies is measured along the vertical axis, an increase in the price of a movie would be shown by
A) shifting the budget constraint in towards the origin.
B) shifting the budget constraint out.
C) rotating the budget constraint around the horizontal intercept such that the new vertical intercept is closer to the origin.
D) making the budget constraint steeper.
Answer: C
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By 2006, 20 percent of the mortgage market consisted of:
A. subprime loans, while 80 percent were still regular prime mortgages. B. prime loans, and an overwhelming 80 percent had become subprime mortgages. C. securitized loans, and the rest were backed by the government. D. individual mortgage loans, and an overwhelming 80 percent had become securitized loans.
Modern terrorism overturns the central assumption of the Westphalian system that says only
a. democracies can provide a lasting form of power. b. weapons of mass destruction actually maintain peace. c. states have the military force to create serious security threats. d. economic inequality pits private citizens against one another.
Suppose that 2012 is the base year and the price deflater in 2016 is 104.5. Considering this, how are the prices in 2016 different from the price in 2012?
a. The 2016 prices are about 4.5 percent lower than the 2012 prices. b. The 2016 prices are about 104.5 percent lower than the 2012 prices. c. The 2016 prices are about 4.5 percent higher than the 2012 prices. d. The 2016 prices are about 104.5 percent higher than the 2012 prices.
During pledge week your local public television station asks viewers to contribute to the station. People who watch public television but do NOT contribute are:
A. free-riding. B. engaged in moral hazard. C. those who do not value public television. D. causing adverse selection.