Assume Bill's income to spend on the two goods in the graph shown is $48, and movie tickets cost $8. If Bill's budget constraint is one of the lines in the graph, which one must it be?
A. A
B. B
C. C
D. It could be line A or B.
B. B
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If the interest rate is 10 percent, the net present value of $500 to be received one year from now is
a. $413.22. b. $450. c. $454.55. d. $500.
Over the price range from $180 to $120 in Figure 20.1, ceteris paribus,
A. Demand is increasing. B. Total revenue is maximized. C. Utility is maximized. D. Demand is elastic.
The new classical theoretical critique of the existing macroeconomic models is based on
A. the link between the money market and the goods market. B. the nature of the tradeoff between inflation and growth. C. wages and labor market equilibrium. D. the way people form their expectations.
Infrastructure, such as public works and public services, is also referred to as
A. intangible capital. B. tangible capital. C. social capital. D. human capital.