The Quantity of Good Y Is Measured Along the Vertical

question 243

Multiple Choice

The quantity of good Y is measured along the vertical axis, and the quantity of good X is measured along the horizontal axis. If the prices of both good Y and good X rise, the budget line

• A) shifts outward to the right and the vertical and horizontal intercepts will both rise.
• B) shifts inward to the left and both intercepts will decline.
• C) rotates, rising along the vertical axis but falling along the horizontal axis.
• D) none of the above.

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Definitions:

Strategic Defense Initiative

was a proposed missile defense system announced by President Ronald Reagan in 1983, intended to protect the United States from attack by ballistic strategic nuclear weapons.

Anti-Ballistic Missile Treaty

A treaty between the United States and the Soviet Union on the limitation of the anti-ballistic missile (ABM) systems used in defending areas against missile-delivered nuclear weapons (1972-2002).

Rehabilitation Act

A 1973 U.S. law that prohibits discrimination on the basis of disability in programs conducted by Federal agencies, programs receiving Federal financial assistance, in Federal employment, and in the employment practices of Federal contractors.