The difference between a price increase and a decrease in income is that:
A. a decrease in income does not affect the slope of the budget line, while an increase in price does change the slope.
B. a price increase will increase real income, while a decrease in income will increase real income.
C. a price increase does not affect the consumption of other goods, while a decrease in income does.
D. None of the statements is correct.
Answer: A
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AGI is
A. found by subtracting certain business expenses from H-S income. B. found by subtracting exemptions from taxable income. C. not used in modern tax policy. D. none of these answer options are correct.
In the above figure, along which range would total revenue remain unchanged by raising prices?
A) between point a and point b B) between point c and point d C) between point d and point e D) below point e and above point a.
The various combinations of goods and services that can be produced, when an economy uses its available resources and technology efficiently, is called:
a. scarcity. b. opportunity cost. c. unlimited production. d. capital accumulation. e. production possibilities.
Externality arises when a car causes air pollution
a. True b. False Indicate whether the statement is true or false