What are the three factors that define a household budget constraint. Explain
What will be an ideal response?
Income, wealth, and prices define household budget constraint.The budget constraint separates thosecombinations of goods and services that are available from those that are not. All the points belowand to the left of a graph of a household budget constraint make up the choice set, or opportunity set.
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Which of the following statements regarding generic drugs and name-brand pharmaceuticals is false?
A) Pharmaceutical companies have spent large amounts of time and money in their attempts to reduce competition from generic drugs. B) Generic drugs have the same chemical content as the corresponding branded drug. C) On average, a generic drug can reduce U.S. sales of a branded drug by as much as 50 percent in the first six months. D) Pharmaceutical companies need only to renew the patents they have on certain drugs to protect them from competition by generic drugs.
A factory recently added new robots to its production line, increasing productivity. This will likely cause a:
A. rightward shift of the supply curve. B. leftward shift of the supply curve. C. shift downward of the supply curve. D. movement up along the supply curve.
What is the potential money multiplier if the reserve requirement is 4%?
a) 2.5 b) 4 c) 14 d) 25
When a firm produces less output, it can reduce:
A. marginal revenue. B. its fixed costs but not its variable costs. C. average fixed cost. D. its variable costs but not its fixed costs.