A person's consumption possibilities is defined by the budget line because
A) it marks the boundary between what is affordable and unaffordable.
B) it represents the individual's preference for different combinations of goods.
C) it marks the boundary between what can be produced and what is unattainable given the current state of technology and resources.
D) all consumers must consume on their budget line.
A
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Supply-side inflation could be caused by which of the following?
A) an increase in aggregate demand B) a decrease in aggregate demand C) an increase in long-run aggregate supply D) a decrease in long-run aggregate supply
The demand for a luxury good whose purchase would exhaust a big portion of one's income is:
A. perfectly price inelastic. B. perfectly price elastic. C. relatively price inelastic. D. relatively price elastic.