Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Figure 6.6Refer to Figure 6.6. Bill's budget constraint is BD. If the price of bell peppers increases, Bill's new budget constraint is
A. EF.
B. AO.
C. AD.
D. CD.
Answer: C
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Incentives work by changing the trade-offs faced by individuals
Indicate whether the statement is true or false
When economies of scale limit the number of firms in an industry to 3, there is a
A) natural monopoly. B) natural oligopoly. C) legal oligopoly. D) legal cartel. E) natural monopolistic competition.
Labor productivity increased so much in the second half of the 1990s because of
A) improved information and communications technologies. B) higher levels of educational attainment by workers. C) cheaper foreign imports used in production. D) increased foreign competition.
Which of the following terms best describes the situation in which a country is running both a trade and a budget deficit?
a. neutral deficits b. twin deficits c. Ricardian equivalence d. balance of trade