-A Budget Line Is Drawn with Automobiles on the Vertical

question 15

Multiple Choice

-A budget line is drawn with automobiles on the vertical axis and boats on the horizontal. Imposing a tax on boats that boosts the price of a boat makes the

• A) indifference curves flatter.
• B) indifference curves steeper.
• C) budget line flatter.
• D) budget line steeper.

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Definitions:

Income Inequality

Income Inequality describes the extent to which income is distributed unevenly among a population.

China

The world's most populous country, located in East Asia, known for its rich history, significant economic power, and rapid modernization and development in recent decades.

Increasing

A process or trend characterized by a growth or rise in quantity, size, or intensity.

Income Distribution

The way in which a nation’s total income is distributed among its population.