A consumer who doesn't spend all of her income
a. would be at a point outside of her budget constraint.
b. would be at a point inside her budget constraint.
c. must not be consuming positive quantities of all goods.
d. must be consuming at a point where her budget constraint touches one of the axes.
b
You might also like to view...
Refer to the scenario above. Phillip should play this game using ________
A) backward induction B) forward induction C) mixed strategies D) his dominated strategy
Which is true?
a. strong property laws encourage property owners to start businesses b. corrupt legal systems discourage economic growth c. a strong financial system allows those with entrepreneurial ideas access to funding d. all
A government wants to reduce electricity consumption by 5%. The price elasticity of demand for electricity is -0.5. The government must ________ the price of electricity by ________.
A. raise; 1.0% B. raise; 0.1% C. lower; 0.5% D. raise; 10.0%
If the steady-state capital-labor ratio is equal to the Golden Rule capital-labor ratio, then in the steady state,
A. investment per worker is as large as possible. B. output per worker equals depreciation per worker. C. output per worker equals investment per worker. D. consumption per worker is as large as possible.