Refer to the information provided in Figure 6.15 below to answer the questions that follow.a.b.C.d.Question #45: Moving along an indifference curve the:A. Consumers prefer some of the consumption points to others.B. Marginal rate of substitution for a good increase as more of the good is consumed.C. Marginal rate of substitution is constant.D. Consumers do not prefer one consumption point to another.Question #46: Suppose inflation comes in the form of an across-the board increase in all prices bysome percentage k. For a consumer with exogenous income operating in a 2-good world, this willcause the budget constraint toa.bought.b.Number of ice cream sandwichesC.bought.100rotate inwardrotate outwardd.Jo-el preferences and budget constraintCshift out in a parallel wayshift inward in a parallel wayNumber of ice cream conesQuestion #47: Suppose you are given a coupon for pizza. This coupon lowers the price for eachadditional pizza you buy by 5% for each addition pizza you buy. What happens to your budgetconstraint, with pizza on the horizontal axis and a composite good on the vertical?The vertical intercept remains the same but the slope becomes steeper as more pizzas are150The vertical intercept increases and the slope becomes steeper as more pizzas are bought.The vertical intercept remains the same but the slope becomes shallower as more pizzas areThe vertical intercept increases but the slope becomes shallower as more pizzas are bought. Question #48: A decrease in a wage tax causes the opportunity cost of leisure to increase.a.b.Question #49: One of the aims of positive economics is to rank policies under consideration from mostdesirable to least desirable.a.b.TrueFalsea.Question #50: If all consumers are price-takers facing the same prices, then their budget lines will allhave the same slope.TrueFalseb.TrueFalse

The indifference curve shows the different combinations of two goods that provide the same level of…

Question # 46: Suppose inflation comes in the form of an across-the board increase in all prices by some percentage k. For a consumer with exogenous income operating in a 2-good world, this wil cause the budget constraint to a. b. rotate inward rotate outward shift out in a parallel way

Question # 46: Suppose inflation comes in the form of an across-the board increase in all prices by some percentage k. For a consumer with exogenous income operating in a 2-good world, this wil cause the budget constraint to a. b. rotate inward rotate outward shift out in a parallel way

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Principles of Economics 1 | S1 21/22 Time left 0:5) When the price of one good increases and the price of the other good and income are held constant, the budget line Select one: shifts parallel to the original budget line so that the new budget line is farther from the origin O b. shifts parallel to the original budget line so that the new budget line is closer to the origin rotates so that the intercept is farther from the origin on the axis representing the good that has experienced an increase in price O a. O c. O d. rotates so that the intercept is closer to the origin on the axis representing the good that has experienced an increase in price Next page