A consumer's budget constraint is drawn on a graph with the number of sandwiches measured along the horizontal axis and the number of bowls of soup measured along the vertical axis. Hold the consumer's income and the price of a sandwich fixed, and increase the price of a bowl of soup. Describe the effect on the budget constraint
The horizontal intercept is unaffected, and the budget constraint becomes flatter. (The vertical intercept is now lower on the vertical axis.)
Economics
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The production possibilities frontier is a graph that shows the various combinations of output that an economy
a. should produce. b. wants to produce. c. can produce. d. demands.
Economics
If the United States can make auto parts in less time than Mexico, then why are U.S. auto parts made in Mexico?
a. Trade is based on comparative advantage, not absolute advantage. b. Mexico has a larger labor force and more manufacturing sites. c. North American manufacturing is evenly divided based on treaties. d. Mexican suppliers have an absolute advantage over U.S. companies.
Economics