A change in the slope of a budget line is solely the result of a change in:

A. consumer preferences.
B. the price of one good relative to the other.
C. money income.
D. the slope of the indifference curve that is tangent to the budget line.


Ans: the price of one good relative to the other.

Economics

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The effects of tax incentive programs such as IRAs and 401(k) accounts suggest that these government programs designed to increase saving lead to ________ in the private capital stock

A) virtually no change B) a slight decrease C) a slight increase D) a significant increase

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When comparing point A, which lies within a utilities possibilities frontier, with point B, which lies on the same utilities possibilities frontier,

A) A is necessarily more efficient than B. B) A is necessarily more equitable than B. C) B is necessarily more efficient than A. D) B is necessarily more equitable than A.

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To eliminate built-in inflation from the economy, the Fed must

a. announce its intention to have a single policy objective b. create a recession c. maintain a constant rate of inflation d. resist the temptation to change its interest rate targets e. work closely with Congress and the President

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At market equilibrium

A) demand equals supply. B) quantity demanded equals quantity supplied. C) surpluses are greater than shortages. D) shortages are greater than surpluses.

Economics