An increase in non-market income will have which of the following effects?

Question

Quizplus · Accepted Answer

An increase in non-market income, such as a gift or a government transfer, effectively increases the total income available for consumption without requiring additional labor. This results in an upward shift in the income constraint, as the individual can now afford a higher combination of goods and services than before, without changing the relative prices of those goods and services.

An Increase in Non-Market Income Will Have Which of the Following