6.

When income decreases, the budget line:

A)

rotates inward.

B)

rotates outward.

C)

shifts outward.

D)

shifts inward.

7.

Hannah has $60 to spend on breadsticks and salad. If the price of salad decreases while the price of breadsticks stays the same, the budget line will:

A)

shift outward.

B)

shift inward.

C)

pivot outward.

D)

pivot inward.

8.

If a consumer's budget increases, the budget line shifts to the _______ and a consumer can reach a _______________ level of consumption.

A)

right; lower

B)

right; higher

C)

left; lower

D)

left; higher

9.

Utility measurement is:

A)

statistically derived.

B)

based on the metric system.

C)

hypothetical.

D)

concrete.

10.

Utility measures:

A)

how much satisfaction is gained from the consumption of a good or service.

B)

the market value of a product.

C)

how easy it is for one good to substitute for another.

D)

the productive efficiency of a good or service.