A budget constraint is:
A. a line that is composed of the additional utility gained from consuming possible combinations of goods and services that a consumer can buy with his or her income.
B. a line that is composed of all the possible combinations of goods and services that a consumer can buy with his or her income.
C. a line that is composed of all the possible combinations of goods and services that maximize a consumer's total utility.
D. a line that is composed of the total utility gained from consuming all possible combinations of goods and services that a consumer can buy with his or her income.
Answer: B
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In the above figure, the competitive wage rate is ________ and the quantity of labor is ________
A) $7.00; 150 hours B) $8.00; 200 hours C) $6.00; 100 hours D) $8.00; 100 hours
During the financial crisis it was proposed that firms be provided with a tax credit for investment projects. Such a tax credit would
a. shift both the demand for loanable funds and the supply of dollars in the market for foreign-currency exchange right. b. shift the demand for loanable funds right and shift the supply of dollars in the market for foreign-currency exchange left. c. shift the demand for loanable funds left and shift the supply of dollars in the market for foreign-currency exchange right. d. shift both the demand for loanable funds and the supply of dollars in the market for foreign-currency exchange left.