Assume Alan's budget constraint is demonstrated by line A in the graph shown. Which of the following could cause Alan's budget constraint to change to line B?
A. Alan could have experienced a drop in income.
B. The price of books could have increased.
C. Alan could have decided he doesn't like going to the movies as much as he used to.
D. The price of movie tickets could have increased.
D. The price of movie tickets could have increased.
You might also like to view...
An expansionary monetary policy causes interest rates to _____________________, and eventually United States net exports ____________ causing the AD curve to shift to the ___________________
A) fall; rise; right B) fall; fall; left C) rise; rise; right D) rise; fall; left E) rise; rise; left
If a country is producing at point where an increase in the production of one good requires a reduction in the production of another good, then it must be producing at an:
A. undesirable point. B. inefficient point. C. efficient point. D. unattainable point.
A public good is any good:
A.) that is paid for by tax dollars. B.) for which it is difficult to exclude users and for which consumption by one person does not subtract from what is available to others. C.) that is consumed by every member of the general public, but use by one person subtracts from what is available for others. D.) that is typically consumed in public places.
If a public corporation goes bankrupt and does not have enough assets to pay off all creditors:
A. the fact that stockholders are residual claimants means they may have to pay in additional capital to cover the obligations. B. the stockholders receive any dividends due before the other creditors are paid C. the stockholders cannot lose more than their investment. D. the stockholders are personally liable for the balance.