Which of the Following Results in a "Parallel" Shift Outward

question 455

Multiple Choice

Which of the following results in a "parallel" shift outward of your indifference curves between gasoline and movie rentals?

• A) any decrease in the prices of gasoline and movie rentals
• B) an equal percentage decrease in the prices of gasoline and movie rentals
• C) an increase in your income
• D) none of the above

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Definitions:

Marginal Product

The additional output produced as a result of using one extra unit of a particular input.

Average Product

Average Product is the output produced, on average, by each unit of a variable factor of production, such as labor, calculated by dividing total product by the number of variable input units used in production.

Total Product

The total quantity of output produced by a firm for a given quantity of inputs over a specified period.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, holding all other inputs constant.