A Decline in Income Is Shown on the Budget Line

question 23

Multiple Choice

A decline in income is shown on the budget line by:

• A)a rotation of the budget line such that its horizontal intercept is larger than its vertical intercept.
• B)a parallel shift in the budget constraint toward the origin.
• C)a rotation in the budget line so it intersects the vertical axis closer to the origin.
• D)a change in the relative price ratio.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.