Answer:
Budget Line rotates inwards (leftwards/ downwards) on that axis, optimal quantity demanded at that higher price .
Explanation:
Budget line represents product combinations that a consumer can afford , using all income with given prices & income.
If price of a product increases, the consumer can consume lesser amount of the product due to higher prices . So, the budget line rotates inwards (leftwards / downwards) on the corresponding x / y axis denoting that good.
So, inwards rotation of the budget line on the corresponding axis representing the price risen good - leads to reduction in the quantity of the good whose price has risen.
Answer:
a. Inflation
Explanation:
In the context of economics, inflation refers to the increase in the price of goods and services
Moreover, we also know that
(1 + Nominal rate of return) = (1 + real rate of return) × (1 + inflation rate of return)
According to the given situation, it is mentioned that The general goods and services prices are expected to rise substantially over the next five years which represents the concept of inflation
Hence, the option a is correct
Answer:
Theory of comparative advantage states that a country has a comparative in a production of certain commodities if the opportunity cost of producing these commodities is lower than the other countries.
Here, it is given that country A is a efficient producer of tin and there are some difficulties in producing corn. So, country A have to concentrate on the production of Tin and purchase the corn from any other efficient producer.
Answer:
C. Professional Ethics.
Explanation:
Ethics are moral qualities which governs a persons behavior. A person is sometimes in an ethical dilemma scenario where he has to take decision which might impact his ethical values. Professional ethics is a situation where a person thinks how his decision will be viewed by an independent jury or audience.
