The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

The magnitude of the slope of the budget line

A) is defined as marginal rate of substitution. B) equals the relative price of the good measured along the horizontal axis. C) increases when income increases. D) decreases when income increases.

Which of the following are NOT characteristics of a competitive market?

A) There is freedom of entry and exit. B) There are zero transaction costs. C) There are only one or two sellers. D) Buyers and sellers have complete information.