In Figure 11.1, an increase in consumer wealth is represented by a change in the consumption function from
A) C1 to C3. B) C3 to C1. C) C2 to C1. D) C1 to C2.
A
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There is no role for government in a free enterprise economy such as the United States.
Answer the following statement true (T) or false (F)
There exists a strong ________ correlation between GDP per capita and ________
A) positive; child labor B) negative; life expectancy C) negative; child labor D) positive; unemployment rate
? If a consumer is currently at Point E on Figure 5-13, she will
A. choose to move to the combination at C to make herself better off. B. choose to move to the combination at D to make herself better off. C. reduce expenditures to make herself better off. D. stay at Point E, since that combination is the cheapest alternative to be on indifference curve U1.
Assume the graph shown represents Kerri's budget constraint. If Kerri's income to spend on these two items increased, which of the following would be true?
A. Kerri's budget constraint would shift out, maintaining the same slope.
B. Kerri's budget constraint would shift out, and get steeper.
C. Kerri's budget constraint would shift in, maintaining the same slope.
D. Kerri's budget constraint would shift out, and get flatter.