Moving along a budget line, the prices of both goods:
A. vary and the consumer's budget is held constant.
B. are held constant and the consumer's budget varies.
C. and the consumer's budget are held constant.
D. and the consumer's budget vary.
Answer: C
You might also like to view...
Two friends, Diane and Sam, own and run a bar. Diane tends bar on Monday, Wednesday, and Friday and receives a wage in addition to tips. Sam tends bar on Tuesday, Thursday, and Saturday and receives only tips. Which of the following represents an implicit cost of operating the bar?
a. Diane's wage. b. Sam's time. c. Diane's tips. d. Sam's tips. e. Both Diane's and Sam's tips.
The Red Jacket Mountain View Inn in New Hampshire charges $150 per room in the winter ski season and $90 during the summer months. The number of rooms and operating costs are constant year round.Which of the following best explains the price difference?
What will be an ideal response?
Using the above table, at a price of $5 there will be a
A. surplus of 20 units. B. shortage of 20 units. C. shortage of 10 units. D. surplus of 10 units.
If the value of net exports is negative, then
A. imports exceed exports. B. exports equal imports. C. exports exceed imports. D. imports are zero.