Assume the price of product Y (the quantity of which is plotted on the vertical axis) is initially $15 and the price of X (the quantity of which is plotted on the horizontal axis) is initially $3. Assume money income is initially $60. If the prices of Y
and X now increase to $30 and $6 respectively and money income increases to $120, then the budget line will:
A. shift rightward and become steeper.
B. shift rightward and become flatter.
C. shift rightward, but its slope will not change.
D. be unchanged.
Answer: D
You might also like to view...
Suppose the problem is the stereo noise in the dorm. On the graph on the next page the amplifier dial numbers are located on the horizontal axis. The vertical axis measures the marginal costs and benefits of various levels of music (noise). Also measured on the vertical axis is the marginal cost of insulating the walls to prevent the externalities from penetrating the wall. 
If negotiation costs are zero and you have the property rights to the airwaves, how loud will the music be played? The answer to the questions are to the nearest whole dial number.
A. 6 B. 10 C. 4 D. 3
Suppose there are 12 million part-time workers and 104 million full-time workers in an economy. Four million of the part-time workers switch to full-time work. We can conclude that
A. the official unemployment rate will fall. B. the official unemployment rate will rise. C. the official unemployment rate will remain unchanged. D. the size of the labor force will increase.
There has been a decrease in investment. As a result, real GDP will ________ in the short run, and ________ in the long run
A) increase; increase further B) increase; decrease to its initial value C) decrease; decrease further D) decrease; increase to its initial level
Remittances are used to fund housing and education for families left behind in the home countries.
Answer the following statement true (T) or false (F)