Which of the following observations is not true of a budget line?
A. It indicates what choices are available to the consumer.
B. It is a curve of constant expenditure.
C. Its slope reports the market terms on which the consumer can trade one good for another.
D. It helps examine the consumer’s preferences.
Answer: D
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Nick considers macaroni and cheese to be an inferior good. As a result of macaroni and cheese being an inferior good, the
A) substitution effect must be larger in magnitude than the income effect so that less is purchased as the price falls. B) substitution effect must be smaller in magnitude than the income effect so that less is purchased as the price falls. C) income effect is positive, so that more is purchased as income increases. D) income effect is negative, so that less is purchased as income increases.
To print the General Ledger:
a. Select Chart of Accounts icon > Print Report b. From the Company section of the Home page > select Trial Balance icon c. Select Report Center > Accountant & Taxes, General Ledger d. Select Company Center > Print General Ledger
Money enables us to make comparisons of value among goods and services. This is the ________ use of money.
A. inflation fighting B. store of value C. standard of value D. medium of exchange
The fraction, or percentage, of total income which is consumed is called the:
a. Break-even income b. Average propensity to consume c. Consumption schedule d. Marginal propensity to consume