Suppose good X is on the horizontal axis, good Y is on the vertical axis, and the slope of an individual's budget line is -2 . Which of the following is true?
a. Good Y is twice as expensive as good X
b. The consumer gives up two units of good Y for each unit of good X she purchases.
c. The opportunity cost of good X is one half of a unit of good Y.
d. All of the above are correct.
b
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
If a rent ceiling is below the equilibrium rent, some allocation scheme must be used. The allocation methods include all of the following EXCEPT
A) charging the equilibrium rent. B) refusing to rent to individuals on the basis of sex, race, or some other attribute. C) requiring a payment, such as key money, in addition to the rent. D) the creation of a black market. E) increased search activity.
Economic historians do not believe there was a shortage of money in colonial America for which of the following reasons?
(a) Interest rates were not unreasonably high. (b) Long-term prices were rising. (c) The colonial economy was growing in real terms. (d) All of the above.