Suppose there are only two goods, food and clothing, with food measured on the vertical axis. If the price of clothing changes, holding all else constant,
a. the budget line undergoes a parallel shift to the right
b. the budget line undergoes a parallel shift to the left
c. a new point of utility maximization will be reached
d. the budget line becomes flatter
e. the slope of the budget line remains constant
C
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Official unemployment rates may underestimate the true rate of unemployment because the official rate
A) fails to include discouraged workers. B) does not include individuals receiving any type of unemployment compensation. C) may include some individuals who are not actually in the labor force. D) includes those workers who only work part time.
Assuming all else equal, if the price of each unit of capital rises, ________
A) a firm moves to a higher point along its labor demand curve B) a firm moves to a lower point along its labor demand curve C) a firm's labor demand curve shifts to the left D) a firm's labor demand curve shifts to the right