Which of the Following Will Keep a Consumer on the Same

question 19

Multiple Choice

Which of the following will keep a consumer on the same indifference curve even if he wishes to move to a higher one?

• A)An increase in the consumer's income
• B)An increase in the relative price of one good the consumer purchases,other prices remaining unchanged
• C)A decrease in the relative price of one good the consumer purchases,other prices remaining unchanged
• D)A doubling of the consumer's income and a halving of the prices of all the goods the consumer purchases

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Definitions:

Tariffs

Tariffs are taxes imposed by a government on imported goods and services to protect domestic industries or to generate revenue.

Real GDP

Real GDP (Gross Domestic Product) measures the value of economic output adjusted for price changes, providing a more accurate reflection of an economy's size and how it's growing over time.

Growth Rate

The percentage increase in a country’s economic output or an individual company's earnings over a specific period, signaling economic health.

Human Capital

The combined capabilities, understanding, or other non-physical resources of people that can generate economic benefits for themselves, their companies, or their society.