Which of the Following Statements Is Correct

question 193

Multiple Choice

Which of the following statements is correct?

• A) The slope of the budget line shows the opportunity cost of the good measured along the x-axis.
• B) Along the budget line, consuming more of one good implies consuming more of the other.
• C) The slope of the budget line shows there is no tradeoff between the two goods because the consumer can buy each of them.
• D) If the consumer's budget increases, the budget line shifts leftward and its slope does not change.
• E) None of the above answers is correct.

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Definitions:

Gestalt Principle

A theory in psychology suggesting that people tend to perceive objects as part of a greater whole rather than as isolated parts.

Proximity

The physical closeness or distance between people or objects, which can influence perceptions, attitudes, and behaviors.

Figure-ground

A visual perception principle that describes how humans separate an object (the figure) from its surrounding area (the ground).

Reversible Figures

Visual illusions that can be perceived in more than one way, switching between alternative interpretations of the same image.