Economists determine what consumers can afford using a budget constraint line shown on a line graph where the horizontal axis shows _________________ and the vertical axis shows __________________.
a. the quantity of one good/the quantity of another good
b. utils/total utility
c. the quantity of available goods/the amount of money the consumer has to spend
d. the amount of money the consumer has to spend/total utility
a. the quantity of one good/the quantity of another good
In a budget constraint line, the quantity of one good is measured on the horizontal axis and the quantity of another good is measured on the vertical axis. The budget constraint line shows the various combinations of two goods that are affordable given consumer income.
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On any given day, ________ changes to achieve equilibrium in the money market
A) the nominal interest rate B) the price level C) the real interest rate D) the inflation rate E) real GDP
Most economists will argue that the minimum wage causes unemployment. Even politicians will recognize this when pressed
However, typically liberals will tout the benefits of the minimum wage while conservatives will decry the disruption that it causes in the labor market. Which economic objective seems to be more important for liberals and which is more important to conservatives if this general observation is correct? Which side is right?
Any increase in the present value of taxes implies
A) an increase in lifetime wealth and an increase in the current labor supply. B) an increase in lifetime wealth and a decrease in the current labor supply. C) a decrease in lifetime wealth and an increase in the current labor supply. D) a decrease in lifetime wealth and a decrease in the current labor supply.
The demand for labor is derived from the demand for final goods which that labor is used to produce
a. True b. False Indicate whether the statement is true or false