The slope of a budget constraint represents:
A) the price of the good measured along the horizontal axis.
B) the price of the good measured along the vertical axis.
C) the opportunity cost of one good in terms of another.
D) the money income of the consumer.
C
Economics
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Suppose that when the price of milk rises 10%, the quantity demanded of milk falls 2%. Based on this information, what is the approximate absolute price elasticity of demand for milk?
A) 5.0 B) 0.2 C) 0.5 D) 2.0
Economics
If the demand for money is insensitive to the interest rate, then the most effective expansionary policy would be
A. fiscal policy. B. monetary policy. C. neither fiscal nor monetary policy. D. both fiscal and monetary policy.
Economics