For an individual who consumes only two goods, X and Y, the opportunity cost of consuming one unit of X in terms of how much Y must be given up is reflected in

a. the individual's marginal rate of substitution.
b. the slope of the individual's budget constraint.
c. the slope of the individual's indifference curve.
d. None of the above.

b

Economics

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Assume the desired reserve ratio is 10 percent, banks loan all excess reserves and the currency drain is zero. If the Fed sells $100 million of U.S. government securities to Boise Bank, the monetary base increases by

A) $1 million. B) $10 million. C) $100 million. D) $1,000 million. E) $90 million.

Economics

In order to maximize its profit, a single-price monopoly always produces output in the inelastic range of the demand for its product

Indicate whether the statement is true or false

Economics