The figure above shows Sam's budget line. The magnitude of the slope of Sam's budget line is equal to the
A) quantity of coffee purchased divided by the quantity of gasoline purchased.
B) price of coffee divided by the price of gasoline.
C) quantity of gasoline purchased divided by the quantity of coffee purchased.
D) price of gasoline divided by the price of coffee.
B
You might also like to view...
________ in the desired reserve ratio will ________ the money multiplier
A) An increase; have no effect on B) An increase; decrease C) A decrease; decrease D) A decrease; will have no effect on
When there is positive inflation,
A) growth in nominal GDP exceeds growth in real GDP. B) growth in real GDP exceeds growth in nominal GDP. C) growth in real GDP and nominal GDP are roughly equal. D) there can never be any growth in nominal GDP.
A budget constraint is:
A. a line that is composed of all the possible combinations of goods and services that maximize a consumer’s total utility. B. a line that is composed of the additional utility gained from consuming possible combinations of goods and services that a consumer can buy with his or her income. C. a line that is composed of all the possible combinations of goods and services that a consumer can buy with his or her income. D. a line that is composed of the total utility gained from consuming all possible combinations of goods and services that a consumer can buy with his or her income.
If it is possible to place a commonly held resource under private ownership, then:
A. the privately held resource will be underused relative to the social optimum. B. the tragedy of the commons becomes even worse. C. the tragedy of the commons can be solved. D. the privately held resource will be overused relative to the social optimum.