Derive the budget line equation for the case where good 2 is a composite good. What is the vertical intercept and what is the slope?
What will be an ideal response?
Since p2 = 1, the usual budget line equation x2=I/p2- (p1/p2)x1 becomes x2=I- p1x1, an equation with a vertical intercept of I and a slope of - p1.
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Medicaid is an example of a cash assistance poverty program
a. True b. False Indicate whether the statement is true or false
Logrolling refers to
a. vote trading among legislators. b. the tendency of voters to free-ride on the payment for public goods. c. the power of well-organized interest groups. d. the tendency of legislators to favor the interests of the timber (logging) industry.
Which of the following is an example of tacit collusion?
A. OPEC B. Copper cartel C. Price leadership D. Government franchise granted to a utility