When a Budget Constraint Shifts Out

question 17

Multiple Choice

When a budget constraint shifts out:
(i) the consumer is better off
(ii) the consumer can now reach a higher indifference curve
(iii) it could only have been caused by an increase in income

• A)(i) only
• B)(i) and (ii)
• C)(i) and (iii)
• D)(ii) and (iii)

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Definitions:

Social Action

Acts carried out by individuals or groups with the intention of changing or influencing social conditions or policies.

Lobbying

The activity of attempting to influence decisions made by officials in the government, often by special interest groups or professional lobbyists.

Action Research Cycle

A reflective process of progressive problem-solving led by individuals working with others in teams, as part of a "community of practice" to improve the way they address issues and solve problems.

Data Gathering

The process of collecting information from various sources for specific purposes, such as analysis, research, or decision-making.