In the above figure if money income increases, the budget line
A) shifts outward and its slope does not change.
B) shifts inward and its slope does not change.
C) rotates outward and becomes steeper.
D) rotates outward and becomes more shallow.
A
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Refer to Goods X and Y. If the indifference curves are horizontal, then we can conclude that
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. X does not affect the individual’s utility. b. Y does not affect the individual’s utility. c. both X and Y affect the individual’s utility. d. neither good affects the individual’s utility.
All of the following are examples of explicit cost a firm might incur except
A) taxes owed to the state government. B) the revenue a firm generates in using its resources. C) the rental value of the warehouse space the company owns and uses for itself. D) the out-of-pocket expense to hire employees.
The largest institutional participants in capital markets are
A) pension funds. B) insurance companies. C) consumer finance companies. D) business finance companies.
For a linear demand curve that is downward sloping, the marginal revenue curve
A) will be to the left of the demand curve and twice as steep. B) will be to the right of the demand curve and twice as steep. C) will be to the left of the demand curve and half as steep. D) will be the same as the demand curve.