Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is CD. If her income increases, her new budget constraint is
A. BD.
B. EF.
C. AD.
D. It is not shown on this graph.
Answer: B
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According to Pigou, the socially optimal quantity
a. is QO b. is QE c. eliminates area A+B+C+D. d. creates area E.
Refer to Table 2-5. What is Estonia's opportunity cost of producing one board foot of lumber?
A) 0.2 cell phones B) 5 cell phones C) 8 cell phones D) 32 cell phones
Which of the following is not a cost of illegal immigration in the U.S.?
a. The adverse impact on unskilled workers b. The damage to national property caused during the process of immigration c. Additional expenditure on healthcare at emergency clinics and hospitals d. Expenditure on public education on the children of immigrants. e. Expenditure on employment insurance programs for the illegal immigrants.
The equilibrium level of income will rise when:
a. planned consumption spending is less than real GDP. b. taxes exceed saving. c. supply exceeds demand. d. planned inventory investment is negative. e. aggregate expenditures exceed real GDP.