The individual’s budget constraint is _____. a. the amount of money she has in the bank b. determined by dividing the individuals income by the price of the goods she wants to buy c. the maximum amount one good she can consume given her consumption of other goods d. a line depicting all the possible […]
Date: September 9th, 2020
Which of these actions will occur to the budget constraint when an individual’s income increases? a. shifts outward b. shifts backward c. rotates clockwise d. cannot be determined from the information given ANSWER a
Date: September 9th, 2020
Briefly discuss the source of federal government revenues. Give special attention to the evolution of revenue sources since the 1960s. What will be an ideal response? ANSWER Just as in 1960, the bulk of federal revenues come from individual income taxes. In 1960, 44 percent came from individual income taxes and in 2000 49.6 […]
Date: September 9th, 2020
The utility maximizing consumption bundle for an individual can be found by locating _____. a. the individual’s bliss point b. any point on an indifference curve touching the budget constraint c. the highest point on an individual’s indifference curve d. the point tangent to an individual’s budget constraint ANSWER d
Date: September 9th, 2020
When isolating the substitution effect of a change in an individual’s budget constraint, _____ is held constant. a. utility b. budget c. income d. consumption ANSWER c
Date: September 9th, 2020
If an individual’s budget constraint shifts, the individual’s changes in consumption can be broken down into _____ and _____ effects. a. budget; consumption b. income; substitution c. utility; indifference d. wealth; savings ANSWER b
Date: September 9th, 2020
For goods on which a relatively small portion of income is expended, _____. a. income effects will be small relative to substitution effects b. income effects will be large relative to substitution effects c. income effects will be about the same as substitution effects d. there will be no income effects. ANSWER a
Date: September 9th, 2020
In a representative democracy, some responsibility for government extends to all citizens. a. True b. False Indicate whether the statement is true or false ANSWER TRUE
Date: September 9th, 2020
Markets do not always allocate resources efficiently, however, government always does. a. True b. False ANSWER b
Date: September 9th, 2020
U.S Postal Service spending is generally not included in total government expenditures. a. True b. False ANSWER a
Date: September 9th, 2020
