Which of the Following Statements Is Not Correct

question 262

Multiple Choice

Which of the following statements is not correct?

• A)A reduction in money income will shift the budget line to the right.
• B)A reduction in money income accompanied by an increase in product prices will necessarily shift the budget line to the left.
• C)An increase in product prices will shift the budget line to the left.
• D)An increase in money income will shift the budget line to the right.

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Definitions:

Probability

An indicator of the probability of an event happening, represented by a value ranging from 0 to 1.

Wealth

The abundance of valuable resources or material possessions, or the control of such assets.

Flood

An overflow of water that submerges land that is usually dry, often caused by heavy rain, melting snow, or failure of a dam.

Expected Utility Maximizer

An economic principle that assumes individuals choose to maximize a utility function that represents their preferences under conditions of uncertainty.