A fall in the interest rate
Tap an option to check your answer.
DSE 2009 Question 55: Budget constraint and consumer equilibrium
Answer and worked solution
Checking your account…
Budget constraint and consumer equilibrium has come up 99 times in 7 exams since 2004.
What this question tests
This question is on Labour supply and intertemporal choice, part of Budget constraint and consumer equilibrium in Microeconomics.
Treating leisure and future consumption as goods: the labour-leisure choice, saving and borrowing.
TestStop has 11 past-paper questions on this subtopic.
Similar questions from other papers
- Match the LIST-I with LIST-II. List I A. Marginal rate of Substitutions B. Budget Line C. Indifference Curve D. Price Ratio. List II I. Slope of Budget Line II. Ratio…
- An individual's utility function for two goods - milk (M) and butter (B) is given as U(M,B) = 5M - 10B and the cost of each unit of the two goods is Rs 1 and the…
- Suppose utility function of a consumer is u(x,y)=xy, where x and y are quantities of the two commodities consumed. If price of x is Re.1 and that of y is Rs.2, and…
- Which of the following are true regarding the outcome of a consumer's optimization process? A. The marginal utility per rupee spent on each good is the same. B. The…
- A utility maximizing consumer has a utility function given by U(X, Y) = 2X + Y. He has a budget constraint given by X + 2Y = 10. In equilibrium he purchases
Question from the DSE 2009 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.