The budget line shows:
A. the amount of product A that a consumer is willing to give up to obtain one more unit of
product B.
B. all possible combinations of two goods that can be purchased, given money income and
the prices of the goods.
C. all equilibrium points on an indifference map.
D. all possible combinations of two goods that yield the same level of utility to the consumer.
Answer: B
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Refer to Figure 22-2. Assuming no technological change, if the United States increases capital per hour worked by $40,000 every year between 2012 and 2016, we would expect to see
A) real GDP per hour worked will be lower in 2016 than it was in 2012. B) the per-worker production function will get flatter over time. C) real GDP per hour worked will increase by the same increment each year between 2012 and 2016. D) the per-worker production function will shift up every year there is increase in capital per hour worked.
Which of the following is an example of government discretionary spending?
A. Social Security retirement payments B. Medicare benefits for the elderly C. defense spending D. net interest paid on government debt held by the public