Michael Can Buy Either Pizzas or Submarine Sandwiches

question 228

Multiple Choice

Michael can buy either pizzas or submarine sandwiches. If the prices of pizzas and submarine sandwiches double and Michael's money income triples, we can conclude that Michael's budget constraint will

• A) shift in but remain parallel to the old one.
• B) shift out but remain parallel to the old one.
• C) swivel in so that the slope of the budget constraint is doubled.
• D) remain unchanged.

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Definitions:

Private Enterprise

Private enterprise is a business or industry that is managed and owned by private individuals or companies rather than by the state.

Production Possibility Frontier

A diagram demonstrating all possible maximal production outcomes for two commodities, subject to a combination of resources and various factors.

Bowed In

Describes a curve that is concave towards the origin, indicating increased efficiency or utility in some economics models.

Capital

Represents resources like funds, equipment, and properties used in the production of goods and services, contributing to the wealth of businesses or economies.