If the Price of the Good Measured on the Horizontal

question 29

Multiple Choice

If the price of the good measured on the horizontal axis increases,the budget line

• A)becomes steeper.
• B)shifts leftward and becomes steeper.
• C)shifts leftward and parallel to the original budget line.
• D)shifts rightward and parallel to the original budget line.
• E)becomes flatter.

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Definitions:

Monitoring

The continuous or regular observation and recording of activities or processes for the purpose of ensuring compliance with standards or progress toward objectives.

Riskier Investment

An investment option that carries a higher probability of losing money but also the potential for higher returns.

Liability

An obligation that an individual or entity has to another individual or entity, often involving the payment of money.

Interest

The cost that creditors charge for use of their capital.