Use the above figure. When the budget line rotates from "c" to "b"
A. the price of product J increases.
B. the price of product K increases.
C. the price of product J decreases.
D. the price of product K decreases.
Answer: D
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Economies of scale are also called increasing returns to scale.
Answer the following statement true (T) or false (F)
Suppose output is $440 billion, government purchases are $40 billion, desired consumption is $320 billion, and net exports are $35 billion. Then desired investment equals
A) $20 billion. B) $30 billion. C) $35 billion. D) $45 billion.
The average propensity to consume is consumption:
a. Multiplied times savings b. Multiplied times investment c. Divided by disposable income d. Divided by saving
A depreciation of the U.S. dollar relative to the euro would tend to
A. increase U.S. exports to Germany. B. increase both U.S. imports from Germany and U.S. exports to Germany. C. decrease U.S. exports to Germany. D. increase U.S. imports from Germany.