When a Budget Constraint Shifts Out

question 17

Multiple Choice

When a budget constraint shifts out:
(i) the consumer is better off
(ii) the consumer can now reach a higher indifference curve
(iii) it could only have been caused by an increase in income

• A)(i) only
• B)(i) and (ii)
• C)(i) and (iii)
• D)(ii) and (iii)

---

Definitions:

Florida

A state located in the southeastern region of the United States, known for its warm climate, extensive coastlines, and diverse ecosystem.

English Law

The legal system of England and Wales, characterized by the doctrine of common law, with its principles based on judicial decisions and precedents.

Machinery Blueprints

Detailed technical drawings or plans for designing and constructing machines or mechanical systems.

Samuel Slater

Known as the "Father of the American Industrial Revolution," he brought British textile technology to America, establishing the country's first successful water-powered cotton mill.