When a product depicted on the horizontal axis of a typical indifference curve model of behavior is taxed
A. the budget line becomes flatter.
B. all the indifference curves of the consumer become steeper.
C. the indifference curve of the consumer shifts right.
D. the budget line becomes steeper.
Answer: D
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
If the price of ice cream increases and the quantity demanded decreases, economists would describe this as:
a. a change in demand b. a change in quantity demanded. c. a change in consumer income. d. a change in one of the variables that shift demand.
Which of the following is correct concerning the long-run Phillips curve?
a. Its position is determined primarily by monetary factors. b. If it shifts right, long-run aggregate supply shifts right. c. It cannot be changed by any government policy. d. Its position depends on the natural rate of unemployment.
If James has a utility curve characterized by the function of U = 2X 3 Y 2 , what is his marginal rate of substitution between goods X and Y?
What will be an ideal response?