Economists assume consumers select a bundle of goods that maximizes their well-being subject to
A) their budget constraint.
B) their income.
C) relative prices.
D) their marginal rate of substitution.
A
Economics
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People are forced to make choices because of:
a. unlimited wants and unlimited resources. b. limited wants and unlimited resources. c. unlimited wants and limited resources. d. limited wants and limited resources. e. irrational wants and limited resources.
Economics
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.
Economics