Budget constraints exist for consumers because
a. their utility from consuming goods eventually reaches a maximum level.
b. even with unlimited incomes they have to pay for each good they consume.
c. they have to pay for goods, and they have limited incomes.
d. prices and incomes are inversely related.
c
You might also like to view...
The Fed is part of the executive branch of the federal government
a. True b. False Indicate whether the statement is true or false
According to the traditional classical school of thought, aggregate supply is vertical both in the short run and in the long run
a. True b. False Indicate whether the statement is true or false
Related to the Economics in Practice on p. 560, In 2012, the Indian monsoons came with less rain than normal. this threatened to
A. increase the overall inflation rate in India where the population is very dependent on rice. B. increase the price of rice in the United States dramatically since Americans consume a large amount of rice. C. lower the price of rice as consumers sought out other suitable substitutes. D. cause a major recession throughout all of Asia.
According to new growth theory,
A) growth in real GDP per capita occurs only if there are increasing returns. B) technological change is influenced by economic incentives. C) economic growth is determined by forces outside the control of the market system. D) centrally-planned economies are the most efficient.