A budget constraint:
A. shows a constant dollar amount spent on different combinations of goods, and each bundle brings a different amount of utility.
B. shows a constant dollar amount spent on different combinations of goods, and each bundle brings the same utility.
C. shows a constant amount of utility gained by consuming different combinations of goods, and each bundle costs the same.
D. None of these is true.
Answer: A
You might also like to view...
Joanne rents a TV production studio to produce an extra hour of a TV show. The rent is
A) a private cost and not an external cost. B) an external cost and not a private cost. C) both a private cost and an external cost. D) neither a private cost nor an external cost. E) a private benefit because viewers will benefit from watching the extra hour of the show.
Currently kidneys are allocated based on the needs of each perspective recipient, their blood type, and the urgency of their case. An alternative way to allocate kidneys is to go by the order in which patients were placed on the waiting list
In that case, the allocation of resources is made using A) market price. B) auction. C) first-come, first-served. D) personal characteristics.
In the United States, some state governments set tiered prices for electricity. These tiered prices lead to budget lines that are:
A. upward-sloping. B. kinked. C. horizontal at a specific level of electricity consumption. D. vertical at a specific level of electricity consumption.
The "crowding-out effect" suggests that
A. government spending is increasing at the expense of private investment. B. imports are replacing domestic production. C. private investment is increasing at the expense of government spending. D. consumption is increasing at the expense of investment.