Indifference Curves Are Linear, and Budget Lines Are Convex to the Origin

question 339

True/False

Indifference curves are linear, and budget lines are convex to the origin.

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Definitions:

Hourly Wage Rate

The amount of money paid for each hour of work performed by an employee.

Unemployment Tax

A tax that employers pay to the government to fund unemployment benefits for workers who lose their jobs.

Social Security Tax

A tax that funds the United States' Social Security program, collected from both employees and employers.

Take-Home Pay

The amount of income that an individual actually receives after deductions, such as taxes and social security, have been subtracted from their gross salary.