An increase in income _____. (Multiple Choice)

An increase in income _____.
 a. makes the budget line flatter
  b. makes the budget line steeper
  c. makes the consumer worse off
  d. makes the consumer achieve a higher level of utility
  e. makes the consumer more selfish

QUESTION 2

A firm replaces a machine by hiring 3 hourly production workers instead.
 a. Both its fixed and variable costs will fall.
 b. Both its fixed and variable costs will rise.
 c. Its fixed costs will rise and its variable costs will fall.
  d. Its fixed costs will fall and its variable costs will rise.

QUESTION 3

Although technically owning a share means the shareholder holds a share of everything that the firm owns, but in actuality he is only entitled to a share of the company's earnings.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

Economists often take their first shot at a business problem by assuming that relevant information is available:
 a. along with a model to help them produce a valid conclusion.
  b. using which a model has to be created.
  c. but a sample test has to be performed to detect its quality.
  d. but the consequences of using them in a model is uncertain.

QUESTION 5

Which of the following will most likely happen when a person's income increases, other things equal?
 a. The budget line will shift outward
  b. The budget line will become steeper
  c. The budget line will become flatter
  d. The indifference curves will shift outward
  e. The indifference curves will shift downward