When the price of one good changes, while the prices of all others stay the same:
A. the change in relative prices is reflected in a change in the slope of the budget constraint.
B. the change in relative prices is reflected in a change in the marginal utility per dollar spent on each good.
C. the change in relative prices can be thought of as a change in the opportunity costs of each good.
D. All of these statements are true.
Answer: D
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When you are a secretary and there are seven levels between your role and the CEO your organization is considered to be
a. fat b. tall c. flat d. short
What function is money serving when you take it on a trip and keep it in your wallet or purse in case you need it?
A. A medium of exchange. B. A flow of funds. C. A store of value. D. A unit of account.
Which of the following correctly describes the relationship between private-sector spending and the federal budget?
a. A decline in private-sector spending reduces the demand for government services, that reduces fiscal outlays and contributes to a budget surplus. b. An increase in private-sector spending must be matched by increase in government spending. This increases fiscal outlays and contributes to a budget deficit. c. A decline in private-sector spending triggers automatic stabilizers that result in a federal budget deficit. d. An increase in private-sector spending must be matched by increase in government spending. This increases fiscal outlays and contributes to a balanced budget.
Which of the following is a reason why government debt is different from individual debt?
A. Government debt must be repaid at some point in time. B. Government can create money to finance its debt. C. Government debt can be owed to foreigners, unlike the debt of individuals. D. Government has fewer sources of income to finance its debt than individuals.