An Increase in Income Will Cause a Shift in the Budget

question 91

Multiple Choice

An increase in income will cause a shift in the budget constraint

• A)outward.
• B)towards the good most consumed.
• C)towards the good least consumed.
• D)inward.

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Definitions:

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, often used unconsciously to make judgments and solve problems quickly.

Additive Strategies

Decision-making methods where alternatives are analyzed and evaluated by systematically adding their attributes to make a choice.

Exemplars

Instances or examples that are typical of a class or group and are used for comparison or emulation.

Problem Solving Strategy

A method or plan of action used to find a solution to a problem or challenge.