Alvin's Preferences for Good X and Good Y Are Shown

question 58

Multiple Choice

Alvin's preferences for good X and good Y are shown in the diagram below. Figure 3.1
-Based on Figure 3.1, it can be inferred that:

• A) Alvin does not consider good X as "good."
• B) Alvin will never purchase any of good Y.
• C) Alvin regards good X and good Y as perfect substitutes.
• D) Alvin regards good X and good Y as perfect complements.
• E) none of the above

Identify the components and determinants of taxable income.

Recognize the characteristics of progressive, regressive, and proportional tax systems.

Understand how government revenues are generated and how they relate to expenditures in education and defense.

Evaluate the role of taxes in financing public goods and services.