Given that income is $300, the price of good Y is $15, and the price of good X is $20, what is the vertical intercept of the budget line?
A. 20
B. 4,500
C. 300
D. 15
Answer: A
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Imbalances in information can cause problems between:
A. buyers and sellers. B. lenders and borrowers. C. employers and employees. D. All of these statements are true.
Surplus refers to:
A. a way of measuring who benefits from transactions and by how much. B. the difference between the price the buyer would have paid and the actual price paid. C. the difference between the price the seller would have accepted and the actual sell price. D. All of these statements are true.
The price of a good will tend to fall when
a. there is excess demand for the good. b. there is excess supply of the good. c. demand for the good increases. d. the supply of the good decreases.
The proposition that an increase in the federal budget deficit caused entirely by a current tax cut has no effect on aggregate demand is called the
A. indirect effect. B. open-economy effect. C. interest rate effect. D. Ricardian equivalence theorem.