The line joining the old and new optimum points following a pivotal rotation of the budget line is:
a. the price-consumption curve
b. the income-consumption curve.
c. the Engels curve.
d. the hypothetical budget line
a
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Which of the following statements is correct?
A. Theory and hypothesis are interchangeable terms for the same thing. B. A hypothesis may result from a tested and confirmed theory. C. A theory may result from a tested and confirmed hypothesis. D. A hypothesis is a theory whose formulation relies on mathematics.
Assume that Jamaica and Norway can switch between producing coolers and producing radios at a constant rate. The following table shows the number of coolers or number of radios each country can produce in one day. Output Produced in One Day Coolers Radios Jamaica 12 6 Norway 24 3 Refer to Table 3-21. Jamaica’s opportunity cost of one cooler is
Increases in the price level will
A) raise consumption because some goods and services are more affordable. B) raise consumption because real wealth increases. C) lower consumption because real wealth decreases. D) lower consumption because goods and services are less affordable.
[NeedAttention]
Exhibit 30-2
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