If a Household's Income Falls by 10%, Its Budget Constraint

question 187

Multiple Choice

If a household's income falls by 10%, its budget constraint will

• A) shift out parallel to the old one.
• B) pivot at the Y-intercept.
• C) shift in parallel to the old one.
• D) be unaffected.

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Definitions:

Metaneeds

In Abraham Maslow's hierarchy of needs, these are the highest-level needs, involving self-actualization and the realization of one's potential.

States of Being

The various conditions or qualities that define the existence of a person or thing at any given time.

Self-Actualizers

Refers to individuals who have realized their potential and seek personal growth and fulfillment, as defined in Maslow's hierarchy of needs.

Basic Motivation

The fundamental drives, desires, or needs that propel individuals to engage in certain behaviors or pursue particular goals.