Assume that a consumer has a given budget or income of $12, and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. Refer to the information given above. What is the slope of the budget
line, if the quantity of apples were measured on the horizontal axis and bananas on the vertical axis?
A. -0.5
B. -0.8
C. -1.6
D. -2.0
Answer: D
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Refer to the scenario above. The present value of the positive cash flows from the investment in Plan 2 is equal to:
A) $9,209. B) $6,263. C) $15,670. D) $7,537.
Whenever a buyer and a seller agree to trade, both must believe they will be made better off
A) whether the buyer and seller live in the same city or different countries. B) only if the buyer and seller live in countries with market economies. C) unless one party is richer than the other. D) unless the buyer resides in a different country than the seller. International trade may make the buyer or seller worse off.
Business people often use "hunches" and intuition to make decisions regarding what to produce
a. True b. False Indicate whether the statement is true or false
Goals of efficiency and equity in tax policy are
a. complementary in most countries. b. necessary for application of the ability-to-pay principle. c. often in conflict with each other. d. easier to achieve when tax codes are complex.