If the graph shown represents Steph's budget constraint, and the price of hairbands were to increase, the slope of Steph's budget constraint would become:
A. steeper, reflecting the fact that earrings are now relatively less expensive.
B. steeper, reflecting the fact that hairbands are now relatively less expensive.
C. flatter, reflecting the fact that earrings are now relatively more expensive.
D. flatter, reflecting the fact that hairbands are now relatively more expensive.
Answer: A
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A local labor market for lawn-mowing workers is initially in equilibrium. If researchers develop a new inexpensive grass seed that provides a lush, slow-growing lawn, which of the following will occur in the short run?
a. Both labor demand and labor supply will drop, leading to a higher wage rate but lower employment. b. Both labor demand and labor supply will rise, leading to a lower wage rate and lower employment. c. Labor demand will drop, leading to a lower wage rate and higher employment. d. Labor supply will drop, leading to a higher wage rate and lower employment. e. Labor demand will drop, leading to a lower wage rate and lower employment.
If Japan imposes a tariff on shoes from Argentina, then
a. the price of Argentinean shoes sold in Japan will fall b. the quantity of Argentinean shoes sold in Japan will rise c. Japanese shoe producers will benefit d. Japanese consumers will benefit from lower prices for Japanese shoes e. Japanese consumers will benefit from lower prices for Argentinean shoes
The downward slope of the production possibilities curve demonstrates:
a. the law of increasing opportunity cost. b. the law of comparative advantage. c. the law of diminishing marginal utility. d. the law of absolute advantage.
Figure 5-17
In Figure 5-17, the consumer would prefer
a.
D to C.
b.
B to D.
c.
C to B or A.
d.
D to A but not B.