Which of the following observations is not true of a budget line?
A. It indicates what choices are available to the consumer.
B. It is a curve of constant expenditure.
C. Its slope reports the market terms on which the consumer can trade one good for another.
D. It helps examine the consumer’s preferences.
Answer: D
Economics
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The fraction of additional income spent on imports is called the marginal propensity to import
Indicate whether the statement is true or false
Economics
Demand and supply curves are drawn assuming ceteris paribus. This means that:
A) economists ignore all assumptions. B) economists don't watch for the fallacy of false cause. C) changes will be proportional. D) all other things besides price and quantity are assumed unchanged.
Economics