Figure 5-16
Figure 5-16 shows Adam's purchases of bananas and apples when apples cost $5 each and bananas $4 each. The information implies that Adam's income
a.
must be $9.
b.
must be $20.
c.
must be $40.
d.
Adam's income cannot be determined without further information.
b
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The aggregate supply curve is a(n) ________ curve because it represents the relationship between price level and the quantity of real GDP supplied, two items that are ________ correlated
A) upward-sloping; positively B) vertical; not C) upward-sloping; negatively D) downward-sloping; negatively E) downward-sloping; positively
Which auctioned good is more likely to have different private values across potential bidders?
A) a truckload of sand B) a Monet painting C) a brand new car D) a gold bar
If a firm is a price taker, its marginal revenue is:
a. equal to market price. b. less than market price. c. greater than market price. d. a multiple of market price that may be either greater than or less than one.
Tariffs
a. benefit consumers by lowering prices b. harm producers by decreasing competition in the product market c. harm consumers by increasing the quantity of goods available d. skew the terms of trade in favor of importing nations e. benefit domestic producers because they can charge higher prices and sell more output