The Quantity of Good Y Is Measured Along the Vertical

question 243

Multiple Choice

The quantity of good Y is measured along the vertical axis, and the quantity of good X is measured along the horizontal axis. If the prices of both good Y and good X rise, the budget line

• A) shifts outward to the right and the vertical and horizontal intercepts will both rise.
• B) shifts inward to the left and both intercepts will decline.
• C) rotates, rising along the vertical axis but falling along the horizontal axis.
• D) none of the above.

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Definitions:

Per Capita Energy Use

The average amount of energy consumed per person in a given area or country.

Developed Countries

Nations with a high level of economic development, typically characterized by a high gross domestic product (GDP) per capita.

Leveled Off

A state where a variable, after a period of growth or decline, stabilizes and shows no significant change.

Biodiesel

A renewable, clean-burning diesel substitute produced from a variety of biomass sources, such as vegetable oils and animal fats.