In Figure 1

question 37

Multiple Choice

In Figure 1.9, as you move up the curve from point J toward point M, the slope

• A)Increases.
• B)Remains constant.
• C)Decreases.
• D)Becomes negative.

---

Definitions:

Transfer Payments

Payments made by governments to individuals without any expectation of a good or service being provided in return, such as social security benefits and unemployment benefits.

Excise Tax

A tax levied on specific goods, services, or transactions, often focused on items such as alcohol, tobacco, and gasoline.

Demand Curves

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to buy at different prices.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.