Assume an Indifference Map with Other Goods on the Vertical

question 31

Multiple Choice

Assume an indifference map with other goods on the vertical axis and health on the horizontal axis.The government provides families with $400 vouchers that can be redeemed for healthcare services at any hospital,public or private.The budget line for a family that avails this voucher scheme will:

• A)be negatively sloped.
• B)be positively sloped up to $400 and then have a zero slope.
• C)have a zero slope up to $400 and then have a negative slope.
• D)be a straight line with an infinite slope.