Refer to Figure 10.1. Suppose the individual is initially at point b. Based on the figure, the individual could afford to increase his utility by:
A. consuming more today and less tomorrow.
B. consuming more today and more tomorrow.
C. consuming more tomorrow and less today.
D. consuming less today and less tomorrow.
A. consuming more today and less tomorrow.
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The automatic budget deficits and budget surpluses that occur in the federal budget over the business cycle
A) destabilize the economy. B) stabilize the economy. C) decrease potential GDP. D) increase potential GDP.
If government decides to produce a collective consumption good, taxes have to be levied to finance the production. In evaluating government provision then, the benefits of public production have to be _____
a. high b. weighed against the excess burden of taxation c. positive d. weighted against the tax incidence on poor families
Refer to the above figure. A movement from Point A to Point B is caused by
A) an increase in income. B) an expectation of a decrease in the price of the good in that figure. C) a decrease in the price of the good in that figure. D) all of the above.
The cash you have in your wallet would be counted in which measure of money?
A. Hard money B. M1 C. M2 D. It would be counted in all of these