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Author Question: A budget constraint is a straight line because: A) the tastes and preferences of the consumer ... (Read 401 times)

DyllonKazuo

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A budget constraint is a straight line because:
 
  A) the tastes and preferences of the consumer change along the constraint.
  B) a consumer faces a fixed price of both goods that do not change with changes in consumption.
  C) the opportunity cost of buying each of the goods changes along the constraint.
  D) a consumer has a limited money income.

Question 2

If the government taxes producers that create pollution, the government's policy
 
  A) allows the producers to pollute more by increasing their costs.
  B) results in less production because the producers' costs have risen.
  C) eliminates pollution entirely by shifting the supply curve leftward.
  D) allows the firms to pass along higher costs but doesn't cut pollution.
  E) forbids the firms from passing along higher costs.


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Dunkey

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