The logic of the budget constraint dictates that an individual's choice must be a point above the actual budget constraint
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following is an exogenous variable in the Three-Sector-Model?
a. GDP price index b. Oil prices c. Quantity of currency per time period d. Real GDP e. All of the above are exogenous variables.
Marginal cost is:
A. the additional cost a firm will incur by producing one additional unit of output. B. the total cost a firm will incur by producing a given level of output. C. the costs that sit on the margin, that do not change regardless of the level of output. D. the additional output a firm will get by employing one additional unit of input.
Motor oil and gasoline are complements. If the price of motor oil increases, consumer surplus in the gasoline market
a. decreases. b. is unchanged. c. increases. d. may increase, decrease, or remain unchanged.
If we compare income mobility in absolute terms, we would measure whether a person's income:
A. is higher than her parents' income. B. is higher at the end of her career compared to the beginning. C. places her higher up in the income distribution over the course of her work-life. D. places her higher up in the income distribution than her parents' income.