Figure 3.2.4 -To Simplify Our Consumption Models, Suppose U.S. Consumers Only Purchase

question 77

Multiple Choice

Figure 3.2.4
-To simplify our consumption models, suppose U.S. consumers only purchase food and all other goods where food is plotted along the horizontal axis of the indifference map. If the U.S. Congress passes an economic stimulus package that pays $300 to each person, how does this affect the budget line for each consumer?

• A) Makes the budget line steeper
• B) Makes the budget line flatter
• C) Parallel outward (rightward) shift
• D) Parallel inward (leftward) shift
• E) none of the above

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Definitions:

Milgram's Studies

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Obedience

The act of following orders or instructions, often from an authority figure, without questioning.

Ethical Controls

Measures or guidelines put in place to ensure behavior and practices conform to ethical standards and principles.

Referent Informational Influence

Pressure to conform to a group norm that defines oneself as a group member.