Refer to the above figure. Which point or points represent(s) a long-run equilibrium?
A. A only
B. B only
C. C only
D. both A and B
Answer: A
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An autonomous increase in net exports for any given inflation rate ________
A) would add directly to planned expenditures B) would raise the equilibrium level of output C) causes the aggregate demand curve to shift to the right D) all of the above E) none of the above
Assume the price of good Y with its quantity measured on the vertical axis is $20 and the price of good X with its quantity measured on the horizontal axis is $5. If the consumer's budget is $100, then the absolute value of the slope of the budget line is:
A. 100. B. 20. C. 1/4. D. 4.
Which of the expressions below best describes the aim of economic theory?
A) to predict how people think about money B) to understand why money motivates some people more than others C) to predict the choices people will make D) to learn what we can do to prevent people from having unrealistic wants
As a general rule, marginal utility will be less:
a. as less of the good is consumed. b. as more of the good is consumed. c. when average utility is at a maximum. d. only when the good is inferior. e. when satisfaction is less than cost.