In a budget line/indifference curve diagram, at the consumer equilibrium
A) any movement upward or downward on the budget line will move the consumer to a less preferred point.
B) any movement to the northeast to higher indifference curves moves the consumer to a less preferred point.
C) the slope of the budget line is as much larger as possible than the marginal rate of substitution.
D) All of the above statements are correct.
A
You might also like to view...
Suppose you are paid a wage of $50 per hour. if your marginal income tax rate is 20%, then for every additional hour you work, your after-tax wage is
A) $10. B) $20. C) $25. D) $40.
What does the Herfindahl-Hirschman Index value near zero imply about the market?
a. Monopoly b. Perfect competition c. Monopolistic competition d. Oligopoly
A decrease in government spending and the enactment of an investment tax credit would definitely cause
a. the quantity of loanable funds traded to increase. b. the interest rate to increase. c. the quantity of loanable funds traded to decrease. d. the interest rate to decrease.
An international organization created at the Bretton Woods conference in 1944 that helps coordinate international financial flows and can arrange short-term loans between countries is called? the:
A) World Bank.
B) International Monetary Fund.
C) U.S. Treasury.
D) U.S. Agency for International Development.