The above figure gives your budget line between CDs and magazines. If the price of a magazine increased, then the budget line
A) shifts outward and the slope does not change.
B) rotates inward with no change in the horizontal intercept.
C) rotates inward with no change in the vertical intercept.
D) rotates outward with no change in the vertical axis.
C
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The most common of all nonprice rationing systems is
A. queuing. B. price ceilings. C. favored customers. D. ration coupons.
Refer to the information provided in Figure 28.7 below to answer the question(s) that follow.
Figure 28.7Refer to Figure 28.7. If the economy is at Point A, a sudden increase in the price of oil without any change in the aggregate demand shifts the short-run Phillips curve (SRPC) from
A. SRPC3 to SRPC1. B. SRPC2 to SRPC1. C. SRPC1 to SRPC2. D. SRPC1 to SRPC3.
Currently, a three-year Treasury note pays 4.75%. Assuming that your tax rate is 20%, what is the minimum interest rate that you would you need to earn on a tax-free municipal bond in order to buy it instead?
A) 0.95% B) 3.8% C) 5.7% D) 15.25%
One of the following is not a characteristic of perfect competition. Which is it?
A. Firms advertise to increase their market share. B. Profits are low in the long run. C. Consumers pay little attention to brand names. D. Firms pay no attention to their competitors’ output levels.