-In the Above Figure, If Household Consumption Is Positively Related

question 42

Multiple Choice

-In the above figure, if household consumption is positively related to household income, then an increase in household income will

• A) shift the line leftward.
• B) shift the line rightward.
• C) make the line positively sloped.
• D) cause a movement along the line.

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Definitions:

Income

The amount of money or its equivalent received during a period of time in exchange for labor, goods, or services, or as profit on capital.

Indifference Curves

Graphical representations in economics showing combinations of goods among which a consumer is indifferent, helping to analyze consumer choices.

Nickels

A five-cent coin made by the United States Mint.

Quarters

In financial and business terms, one of the four three-month periods into which the fiscal year is divided for reporting and forecasting purposes.