--%>

What is Budget line

Budget line: This refers to all combinations of goods that a consumer can purchase with his whole income and price of two goods.

   Related Questions in Microeconomics

  • Q : Problem on zero bond price You are

    You are provided a bond which will pay no interest however will return the par value of $1,000 20 years from now. When your needed return for this bond is 7.35%, what are you willing to reimburse or pay?

  • Q : Illustration of Shirking Can someone

    Can someone please help me in finding out the accurate answer from the following question. Jones, a computer programmer, plays computer games all day rather than doing his work. This is an illustration of: (i) Moral turpitude. (ii) Inefficiency salaries. (iii) Shirkin

  • Q : Strategic Barriers to Entry in

    Extravagant and costly marketing through established firms in an oligopoly is probable to: (w) encourage entry by other profit maximizing firms. (x) raise the minimum efficient scale of production for new entrants. (y) act as a regulatory barrier of entry. (z) increas

  • Q : Firms supply curve in short run

    Describe firm’s supply curve in short run, operating in perfect competition? Answer: It is a MC curve of the firm beginning from a point where MC = AVC (that is, minimum).

  • Q : Monopsonistic Exploitation problem In

    In equilibrium for the firm with power to adjust the salary it pays, then the rate of monopsonistic exploitation equivalents any difference among: (i) VMP and MFC. (ii) MRP and MFC. (iii) P and MC. (iv) MRP and w. (v) MR and w. Fin

  • Q : What is Interest Rate Price Risk

    Interest Rate Price Risk: The risk which occurs for bond owners from fluctuating interest rates is termed as interest rate risk. How much interest rate risk a bond has based on how sensitive its price is to interest rate modifications.

  • Q : Profits of large corporations Can

    Can someone help me in finding out the right answer from the given options. The enormously high profits of big corporations are: (1) Incentives which attract the competition by other firms. (2) Immune to the business cycles. (3) Mainly due to the corporate manipulatio

  • Q : Production utilizing knowledge or

    I have a problem in economics on Production utilizing knowledge or technology. Please help me in the following question. Production necessitates utilizing knowledge or technology to apply energy to rise the: (i) Amount of resources accessible. (ii) In

  • Q : Surveyors problem Surveyors sometimes

    Surveyors sometimes cannot arrange a probabilistic sample and instead rely on a variety of non-probabilistic techniques, each which poses potential problems. Surveyors could: target a quota of a certain type of res

  • Q : Changes in Bonds and Interest Rates

    When you buy a bond if the interest rate is 10% and sell this while the interest rate is 15%, in that case you will receive: (w) less than you paid for the bond. (x) more than you paid for the bond. (y) the same amount which you paid for the bond. (z)