A curve that describes the relationship between income and the amount of a good consumed (holding the consumer's preferences and all other prices fixed) is called:
A. a price-consumption curve.
B. the Engel curve.
C. an income-consumption curve.
D. a budget line.
B. the Engel curve.
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The two main characteristics of the production function are
A) it slopes downward from left to right, and the slope becomes flatter as the input increases. B) it slopes upward from left to right, and the slope becomes steeper as the input increases. C) it slopes upward from left to right, and the slope becomes flatter as the input increases. D) it slopes downward from left to right, and the slope becomes steeper as the input increases.
The U.N.'s Millennium Poverty Goal is to
A. Keep the number of people in poverty at a constant level. B. Cut the percentage of people in extreme poverty in half worldwide. C. Reduce the percentage of people in severe poverty in the poorest nations. D. Cut the absolute number of people in extreme poverty in half worldwide.
An NBA player released their latest shoe, which all the fans want. However, there are only so many shoes produced. How does this affect the market for these shoes?
A. An increase in demand and a surplus at the original price. B. An increase in demand and a shortage at the original price. C. A decrease in demand and a shortage at the original price. D. A decrease in demand and a surplus at the original price.
A movement upward along an upward sloping Engel curve corresponds to
A) upward sloping indifference curves. B) crossing indifference curves. C) a rotation in the budget constraint. D) a parallel shift in the budget constraint.