Related to the Economics in Practice on Page 121: Before

question 227

Multiple Choice

Related to the Economics in Practice on page 121: Before the imposition of an excise tax on beer, name-brand beer sold for $20 per case and generic beer sold for $12 per case. After the imposition of the tax, name-brand beer sold for $28 per case and generic beer sold for $20 per case. The slope of the budget line for a consumer choosing between name-brand and generic beer before the tax was imposed was

• A) 0.6.
• B) 0.71.
• C) 1.4.
• D) 1.67.

Discern the implications of changes in the price level for exports, imports, and net exports.

Understand the concept of equilibrium in the context of aggregate expenditure and real GDP.

Grasp the nature of investment, including its autonomy from the level of saving.

Understand the concept of the risk-reward relationship and how it applies to various investments.

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Definitions:

Social Psychology

The study of how people think about, influence, and relate to other people.

Social Cognition

The area of social psychology exploring how people select, interpret, remember, and use social information.

Stereotype

A generalization about a group’s characteristics that does not consider any variations from one individual to another.

Person Perception

The processes by which an individual uses social stimuli to form impressions of others.