The idea that a consumer is limited to selecting a bundle of goods that is affordable is captured by the:
A. indifference curve.
B. budget constraint.
C. price changes.
D. consumer equilibrium.
Answer: B
You might also like to view...
Economics is
a. exclusively the study of the markets for stocks and bonds b. the study of choice under conditions of scarcity c. exclusively the study of business firms d. fundamentally the same as sociology e. applicable only when scarcity is not a problem
Which of the following firms rely on patents the most as the barrier to keep other firms from entering the industry?
A. pharmaceutical firms B. textbook publishers C. law firms D. wine makers
According to traditional Keynesian analysis, fiscal policy operates by
A. directly affecting aggregate demand. B. indirectly affecting aggregate demand through its effect on the money supply. C. directly affecting aggregate supply. D. informing business people about its plans for the economy so they will know how to adjust their behavior.
An economist observes two consumers in a supermarket. One of the consumers buys a case of Coca-Cola and the other buys a case of Pepsi-Cola. Both colas sell for the same price and the ages and incomes of the consumers are also the same. Based on this
information, how would the economist explain the consumers' choices? A) One of the consumers made the wrong choice, but it is impossible to say which one. B) Both consumers should have considered buying other colas that had lower prices. C) Both consumers should have purchased less than a case because they would be able to buy more later. D) Apparently, the consumers had different tastes.