Beginning at the Vertical Axis Intercept,as a Consumer Moves Down

question 116

Multiple Choice

Beginning at the vertical axis intercept,as a consumer moves down the budget line,she will find that

• A)the marginal utility per dollar spent on the vertical axis good decreases
• B)the marginal utility per dollar spent on the vertical axis good increases
• C)the marginal utility per dollar spent on the horizontal axis good increases
• D)the marginal utilities per dollar spent on both goods increase
• E)the marginal utilities per dollar spent on both goods remain constant along that particular budget line

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Definitions:

Put/call Ratio

A indicator measuring the trading volume of put options to call options, used to gauge investor sentiment in the market.

Bearish Signal

An indicator or trend suggesting that the price of an investment is likely to decrease.

Contrarian

An investor or analyst who intentionally goes against prevailing market trends or sentiments, believing that the crowd is wrong and that there is value in taking an opposite position.

Moving Average

A statistical measure used to analyze data points by creating a series of averages of different subsets of the full data set.