WGU C211 CH 21 Exam Questions And Answers.
The opportunity cost of one good relative to another reflects: - The slope of the budget constraint.
Assume that an individual's budget decreases and that prices remain constant. What would happen
to his/her budget constraint? The budget constraint line would - Shift inward in a parallel manner
Observing an individual's indifference curve demonstrates his/her - Preferences
Assume that Bob's income increases following a promotion at work, but prices do not change. What
will happen to Bob's budget constraint? - It will shift outward, parallel to its initial position.
How will an increase in income affect the budget constraint, assuming that prices remain the same? -
Shift outward.
What is a good called that consumers buy less of when their income increases? - Inferior good.
What is true of indifference curves? - The consumer's preferences are represented with indifference
curves.
https://www.stuvia.com/
The opportunity cost of one good relative to another reflects: - The slope of the budget constraint.
Assume that an individual's budget decreases and that prices remain constant. What would happen
to his/her budget constraint? The budget constraint line would - Shift inward in a parallel manner
Observing an individual's indifference curve demonstrates his/her - Preferences
Assume that Bob's income increases following a promotion at work, but prices do not change. What
will happen to Bob's budget constraint? - It will shift outward, parallel to its initial position.
How will an increase in income affect the budget constraint, assuming that prices remain the same? -
Shift outward.
What is a good called that consumers buy less of when their income increases? - Inferior good.
What is true of indifference curves? - The consumer's preferences are represented with indifference
curves.
https://www.stuvia.com/
