If the consumer's income increases while the prices of both goods remain unchanged, what will happen to the budget line?
A) The budget line rotates inward from the intercept on the horizontal axis.
B) The budget line rotates outward from the intercept on the vertical axis.
C) The budget line shifts inward without a change in slope.
D) The budget line shifts outward without a change in slope.
D
You might also like to view...
The growth of clothing exports originating in Bangladesh is the result of the
A) high productivity of workers in Bangladesh. B) low wages in Bangladesh. C) low productivity of workers in other countries. D) low productivity of workers in Bangladesh in industries other than those that produce clothing for export. E) high wages in other countries.
The antebellum transportation revolution
a. was driven by a few firms that gained monopoly control of the major transportation routes. b. increased the prices of many consumer goods. c. discouraged urban growth. d. caused political and economic tension between the East and the West. e. None of the above.
If a resource is unemployed, it
a. is also underemployed b. is utilized, but not in its most productive employment c. is not utilized d. is not counted as a resource for the economy e. must be a labor resource
Which of the following was a lesson from the 2007-2009 financial crisis?
a. The financial system needed more leverage in order to operate. b. The job of stabilizing the economy should be assigned exclusively to monetary policy. c. Monetary policy is finished once the Fed reduces the federal funds rate to zero. d. The business cycle still exists.