A budget constraint
A) represents the bundles of consumption that make a consumer equally happy.
B) refers to the limited amount of income available to consumers to spend on goods and services.
C) reflects the desire by consumers to increase their income.
D) shows the prices that a consumer chooses to pay for products he consumes.
Answer: B
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Contrast the actions the central bank of a country would take to increase the quantity of money in an economy with the actions it would take to produce the opposite effect
? A country would tend to experience currency appreciation relative to other countries if:
a. the profitability of investments within the country increases relative to the rest of the world. b. people in the foreign currency markets expect the value of the currency to rise in the near future. c. the foreign demand for its exports increases. d. all of the above
Education in the United States is
A) subsidized mainly by state and local governments. B) funded by the federal government only. C) paid for by the parents of students in public school system. D) paid for by Social Security taxes.
Assume that coffee and tea are substitutes for each other. If weather conditions cause a substantial portion of the available coffee crop to be destroyed, then most probably: a. the price of tea will decrease
b. the price of coffee will decrease. c. the price of tea will increase d. none of the above