Which of the following happens as a result of a decrease in income?
a. The budget line becomes steeper.
b. The budget line shifts inward.
c. The budget line shifts outward
d. The budget line becomes flatter.
b
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In the long run, a perfectly competitive firm earns no accounting profits.
Answer the following statement true (T) or false (F)
Between 1820 and 1840 freight rates on western rivers declined drastically. The main reason for this drop in prices was _________
a. the decline in the price level. b. tolls and other barriers to trade decreased. c. the decline in monopoly power. d. the frequent use of the steamboat.
Which of the following statements best describes the relationship between productivity and average levels of unemployment?
a. Average levels of unemployment will tend to be somewhat lower on average when productivity is unexpectedly low and, conversely, will tend to be somewhat higher on average when productivity is unexpectedly high. b. Average levels of unemployment will tend to be somewhat higher on average when productivity is unexpectedly high and, conversely, will tend to be somewhat lower on average when productivity is unexpectedly low. c. Average levels of unemployment will tend to be somewhat higher on average when productivity is unexpectedly low and, conversely, will tend to be somewhat lower on average when productivity is unexpectedly high. d. Average levels of unemployment are not related to levels of productivity.
On which of the following types of unemployment do macroeconomic tools have the greatest effect?
a. Frictional unemployment b. Seasonal unemployment. c. Structural unemployment. d. Cyclical unemployment. e. All the above.