The above figure shows Jane's budget line and two of her indifference curves. Which of the following happens to Jane's budget line if there were a decrease in her monthly dining out budget?
A) It would bend toward the origin, becoming more convex.
B) It would bend away from the origin, becoming more concave.
C) It would shift rightward and not change its slope.
D) It would shift leftward and not change its slope.
D
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Suppose the government has a $180 billion budget deficit. If the government creates $95 billion of new money to finance this deficit and finances the rest by borrowing, the amount borrowed from the public will be
A) $85 billion. B) $95 billion. C) $180 billion. D) $275 billion.
Which of the following is true of technology?
a. Technological improvements are less important today than was true in the past. b. Lack of access to modern technology is a major barrier restraining the growth of low-income countries. c. Often, perverse institutions and policies in low-income countries undermine the potential gains from adoption of modern technology. d. Countries with high investment rates will be unable to apply modern technology effectively.
An externality is
A) a third-party benefit or cost that is associated with the production of a good. B) when external forces such as war or flood affect the market. C) government intervention in the markets. D) transaction costs.
For a firm to be a natural monopoly, economies of scale must be realized at a scale that is close to total demand in the market.
Answer the following statement true (T) or false (F)