The budget line
A) shifts to the left as income increases.
B) has a positive slope.
C) is a vertical line.
D) shows the combination of goods that can be purchased at fixed prices and with a given income.
Answer: D
You might also like to view...
Some economists have predicted that recent developments in energy production in the United States are estimated to result in all of the following EXCEPT:
A) millions of new jobs B) the United States having the lowest energy costs of any country in the industrialized world C) a substantial increase in GDP over time D) significant increases in pollution
An improvement in technology would
a. enable the economy to produce outside its original production possibilities frontier b. enable the economy to move along its original production possibilities frontier c. eliminate scarcity; therefore, the production possibilities frontier would no longer exist d. have no effect on the production possibilities frontier e. change the production possibilities frontier to a line with a positive slope