An affordable consumption bundle is an interior choice if:
A. it lies below the budget line.
B. for each good, there are affordable bundles containing a little bit more of that good and a little bit less of it.
C. for each good, there are no other affordable bundles containing a little bit more of that good and a little bit less of it.
D. it exhausts the consumer's income.
B. for each good, there are affordable bundles containing a little bit more of that good and a little bit less of it.
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Farmers can raise either goats or ostriches on their land. Which of the following would cause the supply of goats to decrease?
A) an increase in the price of ostrich feed B) an increase in the price of ostriches C) a decrease in the price of goats D) an increase in the demand for goats
When the aggregate demand curve shifts to the right, intersecting the aggregate supply curve on its upward-sloping or vertical segment,
a. demand-pull inflation occurs. b. cost-push inflation occurs. c. stagflation occurs. d. deflation occurs. e. the shift pulls the price level down.