Which of the following will most likely happen when a person's income increases, other things equal?
a. The budget line will shift outward
b. The budget line will become steeper
c. The budget line will become flatter
d. The indifference curves will shift outward
e. The indifference curves will shift downward
a
Economics
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If your labor supply increases when you get a raise, which of the following is TRUE?
A) Your substitution effect is greater than your income effect. B) Your substitution effect is less than your income effect. C) Your substitution effect equals your income effect. D) None of the above answers is correct.
Economics
The above figure shows the marginal benefits and marginal costs of a college education. If a subsidy of $5,000 is paid to the colleges, then colleges charge tuition of
A) $0. B) $5,000. C) $10,000. D) $15,000.
Economics