When a Budget Constraint Shifts Outward

question 29

Multiple Choice

When a budget constraint shifts outward

• A)it could only have been caused by in increase in income.
• B)the consumer is indifferent to goods X and Y.
• C)it could only have been caused by an increase in the price of one of the goods.
• D)the consumer can reach a higher indifference curve.

Apply strategies to enhance memory, including study environment consistency and spaced repetition.

Understand mnemonic devices and their role in improving memory.

Acknowledge the importance of distributed practice over massed practice for better long-term retention.

Grasp the concept and application of retrieval cues in memory recall.

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget at specified prices.

Price of Clothing

The monetary value assigned to garments and textiles, determined by various factors including production costs, brand, and market demand.

Price of Food

The cost assigned to food products, which can vary based on factors such as region, availability, and demand.

Utility Maximizing

The economic principle where individuals or entities make choices to get the highest level of satisfaction from their resources.