Price increases will ________ a household's choice set.

A. not change
B. decrease
C. increase
D. sometimes increase and other times decrease


Answer: B

Economics

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As disposable income increases, consumption

A. decreases. B. may either increase or decrease depending on the MPC. C. increases. D. may either increase or decrease depending on the wealth effect.

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The slope of the indifference curve is referred to as

A) the price ratio. B) the marginal tradeoff rate. C) the marginal rate of consumption. D) the marginal rate of substitution.

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According to economists, "money" means the same thing as "wealth"

a. True b. False Indicate whether the statement is true or false

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Marginal utility is

A. the total utility received from consuming a certain quantity of a good divided by the quantity. B. the utility received by the last consumer of a good. C. the utility received from consuming one unit of a good. D. the change in total utility due to a one-unit change in the quantity of a good consumed.

Economics