When John's income was low, he could not afford to dine out and would respond to a pay raise by purchasing more frozen dinners. Now that his income is high, a pay raise causes him to dine out more often and buy fewer frozen dinners
Which graph in the above figure best represents John's Engel curve for frozen dinners? A) Graph A
B) Graph B
C) Graph C
D) Graph D
A
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Betty goes out to enjoy a bouffe with her friend instead of practicing calculus problems for her maths examination that is due the following day. This implies that the opportunity cost of the bouffe to Betty is zero
a. True b. False Indicate whether the statement is true or false
Inflation accounting for the debt argues the following:
a. The change in the value of the debt when inflation occurs complicates income tax codes, and is the reason for the tax changes of 2003. b. The portion of interest payments that compensate lenders for inflation should be considered repayment of debt rather than interest expense. c. The debt represents an inflationary problem, and grows more rapidly when people fear inflation. d. The portion of the deficit dedicated to repayment of interest on the debt should not be considered part of the deficit, because it is a transfer.
The AFC curve
A. is a horizontal line. B. is the same as the total fixed cost curve. C. is U-shaped. D. always slopes downward.
Which of the following statements about U.S. trading partners is true?
a. The top trading partners are Canada, Mexico, China, and Japan. b. The historical reliance on trade with Europe has not changed. c. The United States trades almost exclusively with Asian countries. d. The top trading partners are Russia, Cuba, and the two Koreas.