What Would Happen to the Budget Line If Income as Well

question 225

Multiple Choice

What would happen to the budget line if income as well as prices of both goods increase by the same percentage?

• A)A rightward parallel shift in the budget line
• B)A leftward parallel shift in the budget line
• C)A rightward shift in the budget line
• D)No shift in the budget line

---

Definitions:

Halo Effect

The cognitive bias where the perception of one positive trait influences the perception of other traits of an individual or entity.

Interpersonal Skills

The abilities an individual possesses to communicate and interact effectively with others, essential for successful personal and professional relationships.

Productivity Standards

Benchmarks or criteria set by organizations to measure the efficiency and performance of their operations and employees.

Perceptual Tendencies

The patterns or biases that influence how individuals perceive information and stimuli from their environment.