Assume Claudia's budget constraint is demonstrated by line A in the graph shown. Which of the following would cause Claudia's budget constraint to shift to line C?
A. Claudia's income increased.
B. Claudia's income decreased.
C. Claudia's preferences for these two goods decreased.
D. The prices of both goods have gone down.
B. Claudia's income decreased.
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A president of the United States promises to produce more defense goods without any decreases in the production of other goods. This promise can be valid
A) if the United States is producing at a point on its production possibilities frontier. B) if the United States is producing at a point inside its production possibilities frontier. C) if the United States is producing at a point beyond its production possibilities frontier. D) only if the production possibilities frontier shifts rightward.
Which of the following can be considered an example of structural unemployment?
a. A recent graduate searching for his first job b. A ski instructor looking for a part-time job during summer c. An engineer looking for a new job after losing his job during a recession d. A typist looking for a new job as his skills are not needed in the current labor market