Tunitra consumes at a point on her budget line where her marginal rate of substitution exceeds the magnitude of the slope of her budget line. As Tunitra moves toward her consumer equilibrium point, she will move to a
A) lower budget line.
B) higher budget line.
C) lower indifference curve.
D) higher indifference curve.
D
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Which of the following are examples of the gross private domestic investment component of GDP?
I. the purchase of production machinery by IBM II. an increase in the finished goods inventory at Intel A) I only B) II only C) both I and II D) neither I nor II
Answer the following statement(s) true (T) or false (F)
1. In a market economy, CEOs and other top executives own most of the resources. 2. The market system can work only if the government enforces the rules. 3. Inflation is defined as an increase in the overall price level in an economy. 4. Unemployment can occur because of seasonal fluctuations in demand.
A nearly vertical aggregate supply curve occurs
A. when the economy is producing close to the maximum output level. B. whenever an economy is in a recession. C. in an economy with considerable cyclical unemployment. D. in an economy with much idle capacity.
The labor supply curve slopes ______, but at a high wage rate it bends ____ so that it slopes _______.
Fill in the blank(s) with the appropriate word(s).