An increase in income (all else equal) will ALWAYS lead to a parallel shift of the budget line
Indicate whether the statement is true or false
True . Since prices are unchanged the relative prices of the goods stays the same and thus the slope of the budget line.
You might also like to view...
Using the information in the table shown, the rate of inflation from 2005 to 2006 was:
A. 5.32 %.
B. 5.05 %.
C. 5.00 %.
D. 6.00 %.
If a consumer concludes that the marginal utility of the last dollar spent on vegetables exceeds the marginal utility of the last dollar spent on junk food, he will respond by
A. consuming equal amounts of vegetables and junk food. B. consuming relatively more vegetables and less junk food. C. halting consumption of junk food altogether. D. consuming relatively more junk food and fewer vegetables.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is
A. -2/3. B. -1.5. C. -3. D. -30.
Spending on financial assets ________ counted as part of GDP ________
A) are not; because their purchase is not spending on goods or services B) are; as long as their purchase produces income C) are; because the cash exchanged represents an expenditure D) are not; because interest must be paid on them E) may be; as long as their value increases