If money income increases and the prices of products A and B both increase, then the budget line:
A. must shift to the right.
B. must shift to the left.
C. may shift either to the right or the left, or not at all.
D. will no longer be tangent to an indifference curve.
Answer: C
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Capital flows deal with:
A) buying and selling of newly produced final goods and services among countries. B) buying and selling of existing real and financial assets among countries. C) buying and selling of only domestic final goods and services. D) none of the above.
Which of the following statements best describes the reason for the large migration of African-Americans from the south to the north during the 1920s?
a. This movement was just a continuation of the same trend that had been occurring in large scale since the end of the Civil War. b. African-Americans moved north to reunite families that had been divided during the many years of slavery. c. The African-Americans who had worked in the south had mostly been employed in the manufacturing sector, which suffered a downturn in the 1920s. d. Employers in the North who had traditionally hired European immigrants had to search elsewhere when immigration restrictions were imposed.
If your bank pays you 6% interest on a savings account and inflation is 2%, your approximate real rate of interest is
A) 2%. B) 4%. C) 8%. D) 12%.
Which statement best illustrates the law of diminishing returns?
A. The average total cost of the last unit of output produced is less than the average total cost of the preceding unit of output B. The marginal product of the last unit of a resource used is less than the marginal product of the preceding unit of resource C. The average product of the last unit of a resource used is less than the average product of the preceding unit of resource D. The marginal cost of the last unit of output produced is less than the marginal cost of the preceding unit of output