When a person's income increases:
A. the individual's budget constraint rotates in and becomes steeper.
B. the individual's budget constraint shifts straight out, maintaining the same slope.
C. the individual's budget constraint rotates out and becomes flatter.
D. the individual's budget constraint shifts straight in, maintaining the same slope.
Answer: B
You might also like to view...
The length of time before policymakers realize they need to intervene in the economy is called the
A) recognition lag. B) implementation lag. C) impact lag. D) liquidity lag.
Which of the following statements is TRUE about the relationship among external, internal and social costs?
A) Social costs will always be higher than external costs. B) Social costs will always be higher than internal costs. C) Internal costs will always be higher than external costs. D) Internal costs will never equal external costs.
One mechanism through which increasing public debt may impact the economy is that the resulting
A. increased competition for funds increases interest rates and causes a reduction in investment. B. decreased competition for funds decreases interest rates and causes an increase in investment. C. increased competition for funds decreases interest rates and causes an increase in investment. D. decreased competition for funds decreases interest rates and causes a reduction in investment.
Comparable worth legislation
A) guide markets toward the economically efficient wage. B) mandate that employers pay the same wages to workers, regardless of their gender, for jobs that have comparable worth. C) will eliminate the earnings gap between men and women. D) mandate that potential employers demonstrate that they are worth the wages they expect to earn.