Global Economics WGU C211 CH 21 QUESTIONS AND ANSWERS
WGU C211 CH 21 QUESTIONS AND ANSWERS The opportunity cost of one good relative to another reflects: - answer 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 - answer Shift inward in a parallel manner Observing an individual's indifference curve demonstrates his/her - answer 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? - answer 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? - answer Shift outward.
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