A budget line is a straight line designed to show
a. how income is related to hours worked.
b. all combinations of two goods that can be purchased with a given income.
c. the way a homemaker should divide money among several commodities.
d. that if more money is spent on one good, the breadwinner must work all the harder to maintain a satisfactory level of living.
e. preferences for goods and services.
b
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The organization responsible for determining the start- and end-dates of a recession is
A) the National Bureau of Economic Research. B) the Bureau of Economic Analysis. C) the Federal Reserve. D) the U.S. Department of Labor.
If policymakers attempt to offset a favorable inflation shock with monetary ________, the resulting long-run equilibrium will be at ________ inflation rate compared to allowing the self-correcting mechanism return the economy to potential output.
A. tightening; a lower B. tightening; a higher C. easing; a lower D. easing; a higher
Members of Congress promising to support each other's legislation is known as
A) logrolling. B) implicit collusion. C) explicit collusion. D) protectionism.
If the short-run average variable costs of production for a firm are rising, then this indicates that:
A. Average total costs are at a maximum B. Average fixed costs are constant C. Marginal costs are above average variable costs D. Average variable costs are below average fixed costs