Figure 11-3 ​

question 176

Multiple Choice

Figure 11-3
​
-In Figure 11-3, which line represents the change in the consumption schedule caused by an increase in the personal income tax?

• A)C₁ in graph (a)
• B)C₂ in graph (a)
• C)C₁ in graph (b)
• D)C₂ in graph (b)

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Definitions:

Barter Economy

An economic system where goods and services are exchanged directly for other goods and services without the use of money as a medium.

Money Economy

A system where goods and services are exchanged using money as a medium, rather than through barter.

Money Economy

A system in which goods and services are traded using money as a medium of exchange rather than barter.

Barter Economy

An economic system where goods and services are exchanged directly for other goods and services without using money.