Figure 5-6
In Figure 5-6, a shift in the budget line from AC to AB indicates
a.
the price of wine coolers has risen.
b.
income has increased.
c.
the price of beer has fallen.
d.
the price of wine coolers has fallen.
e.
All of the above are correct.
a
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Refer to Scenario 14.2. What is the average product of the 4th worker?
A) 4 B) 5 C) 6 D) 6.5 E) 7
Which of the following is not an example of a price ceiling?
a. The Chinese government sets the price of housing in China below equilibrium. b. The government of the former Soviet Union sets the price on food below those prevailing in the free market. c. In the 1970s, the Nixon administration imposed wage and price controls, thereby keeping wages and prices from rising. d. In the late 1970s, the U.S. government required gasoline to be sold at a price per gallon that was below what would have prevailed in a free market. e. The U.S. government requires that sugar be sold at a price that exceeds the world price of sugar.