Consider two goods, X and Y, where X is measured on the horizontal axis and Y is measured on the vertical axis. All else constant, a decrease in the price of X will cause the consumer's budget constraint to:
A) rotate in along the X axis
B) rotate out along the X axis.
C) shift out parallel to the original budget constraint.
D) shift in parallel to the original budget constraint.
B
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In the modern U.S. economy, the typical unemployed person stays unemployed for
A) an amount of time that is hard to quantify. B) a long time during expansions and a short time during recessions. C) a relatively long time, over a year. D) a relatively short time, less than six months.
Both the precautionary and asset demand for money are influenced by
A) the U.S. Treasury. B) the interest rate. C) gold prices. D) none of the above.
A French export is a good
a. produced in France and sold to Britain b. used in the production of a French good c. produced in Britain d. consumed in Britain e. produced in Britain and sold to France
When the United States imposed a tariff on imported shrimp, a Vietnamese official said: "If the tariffs are imposed, that will mean fewer shrimp for the U.S. market and higher prices for consumers. So the U.S. government position hurts its own people. That's irrational." The imposition of tariffs by the United States in this case illustrates:
A. the good/bad paradox that what is good economics is always bad politics and vice versa. B. that U.S. consumers are either irrational or altruistic because they are willing to pay higher prices to help the U.S. shrimp industry. C. what the text calls the general rule of political economy, which states that often small interest groups lobby better than large groups. D. that the U.S. government, like all governments, is sometimes irrational.