Lizzie's budget line is shown in the figure above. If the price of a magazine rises, Lizzie's real income in terms of magazines books ________ and her real income in terms of cookies ________
A) increases; does not change
B) decreases; does not change
C) decreases; increases
D) increases; decreases
B
You might also like to view...
What is Okun's Law?
What will be an ideal response?
Explain and demonstrate graphically how targeting nonborrowed reserves can result in federal funds rate instability
What will be an ideal response?
Hiring a sports celebrity to advertise a car dealership is a way of:
A. a waste of the dealership's money because celebrities aren't car experts. B. statistically discriminates potential buyers who like sports. C. screening those who aren't willing to pay as much for a car. D. signaling the quality of the cars because it is costly to hire that celebrity.
If the tax cost of this proposed project is $300 per person, a majority vote will:
Answer the question on the basis of this table showing the marginal benefit that a particular public project will provide to each of the three members of a community. No vote trading is allowed.
A. defeat this project and resources will be underallocated to it.
B. pass this project and resources will be allocated efficiently.
C. pass this project and resources will be underallocated to it.
D. defeat this project and resources will be overallocated to it.