You are studying with a friend and your friend says "A budget line shows the various combinations of two goods that can be purchased with the buyer's income at current prices." Is your friend's assessment correct or not?
What will be an ideal response?
Your friend's description of the budget line is accurate.
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Other things the same, which of the following responses would we expect to result from a decrease in U.S. interest rates?
a. U.S. citizens decide to hold more foreign bonds. b. People choose to hold more currency. c. You decide to purchase a new oven for your cookie factory. d. All of the above are correct.
If a country moves from a point below the production possibilities curve to a point on the curve, it is experiencing
A. Increased capacity utilization. B. Long-run growth. C. Expanded capacity. D. Economic growth.
Which of the following is true about the GNI of the United States?
What will be an ideal response?
The following equations represent the demand and supply for bottles of nail polish
QD = 25 - P QS = -15 + 3P What is the equilibrium price (P) and quantity (Q - in thousands) of bottles of nail polish? A) P = $15; Q = 30 thousand B) P = $10; Q = 15 thousand C) P = $20; Q = 5 thousand D) P = $5; Q = 20 thousand