Question :
33) If the price of the good measured the x-axis : 1241149
33) If the price of the good measured on the x-axis becomes relatively cheaper, the budget line will
A) become vertical.
B) become steeper.
C) become flatter.
D) become horizontal.
E) shift rightward and not change its slope.
34) Assume that there are two goods, x and y. The quantity of good x is measured on the x-axis and the quantity of good y is measured on the y-axis. If the price of good y rises, then the
A) y-axis intercept of the budget line increases.
B) y-axis intercept of the budget line increases and the x-axis intercept of the budget line decreases.
C) y-axis intercept of the budget line decreases and the x-axis intercept does not change.
D) slope of the budget line changes.
E) Both answers C and D are correct.
35) Suppose Alice spends her budget on books and downloaded movies. If her budget does not change, and the price of a book stays the same but the price of a downloaded movie falls, her budget line
A) shifts outward and its slope does not change.
B) shifts inward and its slope does not change.
C) rotates inward and its slope changes.
D) rotates outward and its slope changes.
E) does not change because her budget has not changed.
36) Reb buys fishing lures and steaks. If his budget does not change and the price of a fishing lure decreases, the maximum number of fishing lures he can purchase ________ and the maximum number of steaks he can purchase ________.
A) increases; increases
B) increases; decreases
C) increases; does not change
D) decreases; increases
E) does not change; does not change
37) Samantha has a budget of $40 and buys beef jerky and fried pork rinds. Her budget does not change and the price of both beef jerky and fried pork rinds increases. As a result,
A) Samantha’s consumption possibilities have decreased.
B) Samantha’s budget line shifts inward.
C) Samantha can still buy the combination of beef jerky and fried pork rinds she was initially consuming because her budget did not change.
D) Answers A and B are correct.
E) Answers A and C are correct.
38) Nadir and Nina consume the same goods. If Nadir has more income than Nina, then Nina’s budget line will
A) lie to the left of Nadir’s budget line.
B) be steeper than Nadir’s budget line.
C) lie to the right of Nadir’s budget line.
D) be flatter than Nadir’s budget line.
E) More information is needed to determine how Nina’s and Nadir’s budget lines compare.
39) Which of the following describes what happens to a consumer’s budget line if that consumer’s budget increases?
A) The budget line becomes steeper.
B) The budget line becomes more horizontal.
C) The budget line shifts farther away from the origin of the graph.
D) The budget line shifts closer to the origin of the graph.
E) The budget line does not change.
40) When a consumer’s budget increases, the budget line
A) becomes steeper.
B) becomes flatter.
C) shifts outward.
D) shifts inward.
E) does not change.
41) An increase in a consumer’s budget
A) shifts the budget line outward and does not change its slope.
B) shifts the budget line inward and does not change its slope.
C) rotates the budget line outward around the point where it intersects the x-axis.
D) rotates the budget line inward around the point where it intersects the x-axis.
E) rotates the budget line outward around the point where it intersects the y-axis.
42) An increase in a consumer’s budget
A) changes the relative prices of the goods.
B) changes the slope of the budget line.
C) decreases consumption possibilities.
D) increases consumption possibilities.
E) has no effect on the consumer’s budget line.
