Define a budget set. Is it the same as a budget constraint?
What will be an ideal response?
A budget set is the set of all possible bundles of goods and services that a consumer can purchase with his income. It is not the same as a budget constraint. A budget constraint represents the combination of goods and services a consumer can purchase that exactly exhausts his income.
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How does an economy's central bank manage the supply of money through official reserve transactions?
What will be an ideal response?
Suppose there was a country with an adult (age 16 and over) population of 1,000, of which 100 were unemployed and 700 were employed. Which of the following is true?
a. The employment population ratio is 87.5 percent. b. The labor force participation rate is 70 percent. c. The unemployment rate is 12.5 percent. d. There are 700 individuals in this country's labor force.