Which of the following will change the slopes of your indifference curves between gasoline and movie rentals?
A) a change in your preferences for either of the two goods
B) only a change in the price of either of the two goods
C) only a change in your income
D) Both a change in the price of either good and a change in income will change the slopes of your indifference curves.
A
You might also like to view...
Bargaining costs are generally high in cases involving environmental externalities because
a. there are strong incentives to be a free rider. b. many individuals may be affected by the externalities. c. it is difficult to measure the costs of the externalities. d. all of the above.
Under a market system of resource allocation
a. prices determine what consumers buy while the government determines what firms produce b. prices determine what firms produce while the government determines what consumers buy c. prices determine both what firms produce and what consumers buy d. the government determines both what firms produce and what consumers buy e. the government allocates resources while prices allocate goods and services
Despite the elimination of the federal budget deficit in the late 1990s, the trade deficit increased due to
A. increased household saving. B. decreased household saving. C. a depreciation of the dollar. D. an increase in inflation rates.
For a typical consumer, most indifference curves are downward sloping
a. True b. False Indicate whether the statement is true or false