If both prices increase by 10 percent and money income remains constant, the budget line for both ...

If both prices increase by 10 percent and money income remains constant, the budget line for both goods in question will:
 a. become steeper
 b. become flatter
 c. will have the same slope
  d. will become vertical.

QUESTION 2

Which of the following is true?
 a. A person's wage or salary is his or her opportunity cost of leisure.
 b. Any time that is spent working for a paid job is known as the time spent in leisure.
 c. An individual's decision to work in a low paying job or a high paying job is known as the labor-leisure tradeoff.
  d. A person who works more also always get to enjoy more leisure time.
 e. If an individual labor supply curve bends backward at some high wage, then the market supply curve also bends backward.

QUESTION 3

If a 15 percent reduction in the price of electricity per kilowatt hour has no impact on the total electricity consumption, we can infer that in the short run, the demand for electricity is _____.
 a. perfectly inelastic
  b. perfectly elastic
  c. unit-elastic
  d. relatively inelastic
  e. relatively elastic

QUESTION 4

Budget lines:
 a. are typically positively sloped.
 b. are typically negatively sloped.
 c. often have the same slope as indifference curves.
  d. are generally horizontal.

QUESTION 5

Which of the following statements is true?
 a. Leisure only includes the time that a person spends socializing.
  b. Standing in a queue at a bank is not considered leisure.
  c. If someone enjoys his or her job, then the time he or she spends at work is considered leisure.
  d. Leisure will always decrease as a person's wage increases.
  e. Leisure includes the time that a person spends away from a paying job, regardless of how this time is spent.

QUESTION 6

Consider a medical breakthrough that led to the discovery of a simple microchip, which when inserted inside the human ear could prevent certain chronic diseases. The price elasticity of demand for that microchip would most likely be _____.
 a. highly elastic
  b. highly inelastic
  c. undefined
  d. negative only for high prices
  e. positive only for high prices