Sue consumes apples and bananas. Suppose Sue's income doubles and the prices of apples and bananas do not change. Sue's budget line will
A) shift leftward and its slope will not change.
B) remain unchanged.
C) shift rightward and its slope will not change.
D) shift rightward and become steeper.
C
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Which of the following is an example of a commodity money?
A) gold coins B) dollar bills C) British pound notes D) Japanese yen notes
A key to analyzing subgame perfect equilibrium strategy in sequential games is
a. predictable behavior b. an explicit order of play for at least some participants c. information sets that are known with certainty d. credible threats clearly communicated e. randomness
Which of the following is not true in the long run under perfect competition? a. There is no incentive for firms to enter or exit the industry. b. Economic profit is zero
c. Long-run marginal cost is minimized. d. Long-run average total cost is minimized.
What is the present value of $5,000 to be received in one year if the current market interest rate is 6.0%?
a. $3,125 b. $4,717 c. $4,923 d. $5,300