If incomes fall, then
A) the budget constraint shifts inward.
B) the budget constraint shifts out.
C) there is no change in the budget constraint.
D) there is no relationship between the budget constraint and income.
Answer: A
You might also like to view...
Government spending ________ is included in gross domestic product
A) at the federal level of government only B) at state and local levels of government only C) at federal, state, and local levels of government D) on defense goods only
According to the text, Ethiopia probably has a low per capita real Gross Domestic Product (GDP) because
A) it has too many resources. B) it has a corrupt government. C) it has a low rate of saving. D) there are too many skilled workers in the country.
A perfectly elastic demand is one in which the:
A. demand curve is perfectly vertical. B. demand curve is perfectly horizontal. C. price elasticity is exactly 1. D. response to a change in price is immediate.
If one Mexican peso was worth 0.05 U.S. dollar, then one U.S. dollar would be worth:
a. 20 U.S. dollars. b. 20 Mexican pesos. c. 2 Mexican pesos. d. 0.05 Mexican pesos. e. 1 Mexican peso.