An Increase in Income with No Changes in the Price

question 4

Multiple Choice

An increase in income with no changes in the price of either good will cause

• A)An inward shift of the budget curve
• B)An outward shift of the budget curve
• C)No change in the budget curve
• D)An inward rotation of the budget curve

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Definitions:

Stare Decisis

A legal principle that dictates that courts are bound by their own earlier decisions and the decisions of higher courts when the same points arise again in litigation.

Unconstitutional

Actions or laws that violate the principles or specific provisions of the Constitution.

Eighth Amendment

A provision of the U.S. Constitution that prohibits the federal government from imposing excessive bail, excessive fines, or cruel and unusual punishments.

Cruel and Unusual Punishment

A legal principle found in the Eighth Amendment of the U.S. Constitution that prohibits the government from imposing severe, excessive, or arbitrary punishments.