Refer to Budget Lines. If the consumer purchased basket B last year and purchases basket C this year, we can conclude that
a. the consumer is not behaving optimally.
b. the consumer's tastes changed between this year and last year.
c. the consumer's indifference curves cannot be convex.
d. the law of demand does not hold for this consumer.
b. the consumer's tastes changed between this year and last year.
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In the above figure, a minimum wage of ________ would result in employment of ________
A) W2; L1 B) W2; L2 C) W1; L1 D) W1; L2
A country that does not engage in international trade is likely to face a problem because: a. some industries are too small to be efficient if restricted to their domestic markets alone. b. it cannot produce along its production possibilities frontier
c. domestic producers face a fluctuating demand for their products. d. it cannot consume at a point below its production possibilities frontier.