An increase in income will
A) shift the budget constraint to the right.
B) make the budget constraint steeper.
C) make the budget constraint flatter.
D) make the budget constraint more bowed.
Answer: A
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Refer to the scenario above. The opportunity cost of producing one pound of apples in Zeta is:
A) 0.67 pounds of oranges. B) 2 pounds of oranges. C) 1.5 pounds of oranges. D) 3 pounds of oranges.
Expected utility functions have to be concave if they are to represent risk averse tastes.
Answer the following statement true (T) or false (F)
Why is it a bad business practice to assume that raising prices will lead to increases in total revenue?
What will be an ideal response?
In 2006, the Bank of Japan adopted a policy framework focusing on
A) expected inflation one to two years in the future. B) current inflation. C) maintaining a fixed exchange rate. D) the growth in the money supply.