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Unformatted text preview: pizza. If Laura’s budget increases, the budget line a. becomes steeper. b. becomes flatter. c. shifts outward and its slope does not change. d. shifts inward and its slope does not change. 5. Hank’s consumption possibilities change if a. his utility changes. b. the prices of the goods and services he buys change and/or if his income changes. c. technology changes. d. None of the above will change Hank’s consumption possibilities. 6. Linda has $10 a month to spend on ice cream cones and chocolate bars. If the price of an ice cream cone is $2 a cone and the price of a chocolate bar is $1 a bar, which of the following is a point on Linda’s budget line? a. 4 cones and 0 chocolate bars b. 1 cone and 8 chocolate bars c. 3 cones and 1 chocolate bar d. 5 cones and 10 chocolate bars 1. Answer: a 2. Answer: b 3. Answer: a 4. Answer: c 5. Answer: b 6. Answer: b...
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This note was uploaded on 10/04/2011 for the course ECONOMICS 281 taught by Professor Vg during the Spring '09 term at University of Alberta.
- Spring '09