Which of the following statements best describes a consumer's budget line?
A) It shows all combinations of goods among which the consumer is indifferent.
B) It shows the limits to a consumer's set of affordable consumption choices.
C) It shows the desired level of consumption for the consumer.
D) It shows the consumption choices made by a consumer.
B
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Which of the following is a primary policy tool of the Federal Reserve?
A) The federal funds rate B) Open market operations C) The prime rate D) The money supply
If the demand curve a firm faces shifts to the right, usually:
a. it would be impossible to tell whether the marginal revenue curve shifts. b. the marginal revenue curve would shift to the left. c. the marginal revenue curve would shift to the right. d. the marginal revenue curve would not shift.
The emergence of the subprime mortgage market following the recession of 2001 made it increasingly difficult for low-income individuals to obtain a mortgage
a. True b. False Indicate whether the statement is true or false
Based on the graph showing rational expectations and the AD/AS model, expansionary policies will cause ______.
a. a move to a lower point on the aggregate demand curve
b. a move to a higher point on the aggregate demand curve
c. the aggregate demand curve to shift to the left
d. the aggregate demand curve to shift to the right