The Quantity of Good Y Is Measured Along the Vertical

question 243

Multiple Choice

The quantity of good Y is measured along the vertical axis, and the quantity of good X is measured along the horizontal axis. If the prices of both good Y and good X rise, the budget line

• A) shifts outward to the right and the vertical and horizontal intercepts will both rise.
• B) shifts inward to the left and both intercepts will decline.
• C) rotates, rising along the vertical axis but falling along the horizontal axis.
• D) none of the above.

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Definitions:

Egocentrism

In developmental psychology, it refers to the inability of children in the preoperational stage to see any point of view other than their own.

Cognitive Flexibility

The mental ability to switch between thinking about two different concepts, or to think about multiple concepts simultaneously.

Transductive Reasoning

A form of reasoning where conclusions are drawn based on specific examples or instances, rather than through abstract logic, prevalent in young children.

Class Inclusion

The principle that one category or class of things can include several subclasses.