The different combinations of any two goods that an individual can afford to purchase, given his income and prices, is shown by:
a. an indifference curve.
b. an indifference map.
c. a budget line.
d. a demand curve.
e. a supply curve.
c
You might also like to view...
According to the quantity theory of money, a 25 percent change in M, the quantity of money, leads to a 25 percent change in
A) V, the velocity of circulation. B) P, the price level. C) Y, real GDP. D) R, the interest rate.
Because of their greediness, speculators are considered bad for exchange-rate markets
a. True b. False Indicate whether the statement is true or false
According to the Cost-Benefit Principle, you should go see the latest Star Wars movie with your friends this weekend if:
A. the extra benefits of seeing the movie are greater than the extra costs of seeing the movie. B. you really like Star Wars. C. the average benefit you get from going to the movies is greater than the average cost of a ticket. D. you can afford to go to the movies.
Which of the following represents an uninsurable risk to a business firm?
A. The possibility that its warehouse will burn down. B. The possibility that several of its workers will be injured at work. C. The possibility that an adverse change in consumer tastes will decrease the demand for the firm's product. D. The possibility that a tornado will damage the plant and stop production for a month.