See attached image for question 35)

37) What is a common behavioral factor that causes people to spend more when using credit cards (and running up debt) as opposed to using cash?

Paying with cash requires more trips to the ATM.

It's easier to keep track of spending by receiving a monthly statement of all charges.

It's easier to return items when using credit cards versus cash.

Paying for the purchases in the future seems less burdensome than paying for it now.

38) Assume there is a budget line with bagels on the vertical axis and bananas on the horizontal axis. What happens to the budget line when the price of bagels falls by 10% and the price of bananas falls by 20%?

The budget line changes to have a flatter slope.

There is a parallel inward shift of the budget line.

There is a parallel outward shift of the budget line.

The budget line changes to have a steeper slope.

If the following figure, if the price of socks is $5, the price of underwear is and the budget is Socks 20 Underwear $4; $125 $4; $80 $6.25; $125 $6.25; $80