The absolute value of the slope of the budget constraint is equal to
A) the quantity of the good on the vertical axis divided by the quantity of the good on the horizontal axis.
B) the price of good on the horizontal axis divided by the price of the good on the vertical axis.
C) the marginal rate of substitution between the two goods in question.
D) the price of good on the vertical axis divided by the price of the good on the horizontal axis.
B
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Pat gives up a $40,000 per year job to stay at home and take care of the house. By so doing, Pat saves $15,000 in child care and house cleaning services which he now performs himself. The direct effect on GDP from Pat's decision is a decrease of
A) $25,000. B) $15,000. C) $30,000. D) $40,000. E) $55,000.
Most checkable deposits are insured up to $250,000 by
A. state banking commissions. B. the Federal Reserve Board. C. the U.S. Department of the Treasury. D. the Federal Deposit Insurance Corporation.