As a consumer moves along an indifference curve:
A. prices and the consumer's budget are held constant, but total utility changes.
B. total utility is held constant, but prices, quantities, and the consumer's budget may change.
C. the consumer's budget is held constant, but prices change.
D. prices are held constant, but the consumer's budget changes.
Answer: B
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The three broad reasons for saving, as identified by economists, relate to:
A. the life-cycle, precaution, and bequests. B. national, public, and private production. C. capital gains, capital losses, and deficits. D. consumption, investment, and exports.
The word “economy” comes from the Greek word oikonomos, which means Question 39 options: “environment.” “production.” “one who manages a household.” “one who makes decisions.”
a. "environment"
b. "production"
c. "one who manages a household"
d. "one who makes decisions"
An income tax is progressive if the:
A. absolute amount paid as taxes varies directly with income. B. percentage of income paid as taxes is the same regardless of the size of income. C. percentage of income paid as taxes increases as income increases. D. tax rate varies inversely with income.
David Card and Alan Krueger conducted a study of fast-food restaurants in New Jersey and Pennsylvania. The study found that
A) there was a large reduction in employment of low-skilled workers when the minimum wage was raised in these states. B) the earned income tax credit is more effective in raising the incomes of low-skilled workers than increases in the minimum wage. C) increases in the minimum wage had a very small impact on employment. D) increases in the prices of food have a greater effect on wage increases in New Jersey than in Pennsylvania.