The slope of the budget line is the amount of one commodity that a consumer must give up in order to obtain an additional unit of the other commodity.
Answer the following statement true (T) or false (F)
True
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Which of the following classifications is correct?
A. City streets are consumption goods because they wear out with use. B. Stocks are capital goods because when people buy and sell them they make a profit. C. The coffee maker in the coffee shop at an airport is a consumption good because people buy the coffee it produces. D. White House security is a government service because it is paid for by the government..
Suppose you purchase a call option to purchase General Motors common stock at $80 per share in March. The current price of GM stock is $83 and the time value of the option is $5. What is the intrinsic value of the option? As the expiration date approaches, what will happen to the size of the time value of the option?
What will be an ideal response?
As a result of a tariff on an imported good,
a. domestic producers are better off because they sell more goods at the same price. b. domestic producers are better off because they sell more goods at a higher price. c. domestic producers are better off because they sell the same quantity of goods at a higher price. d. domestic consumers are better off because there are more domestically produced goods available. e. domestic consumers are neither better off nor worse off because imports do not change.
Give an example, not similar to the text material, where you made a decision based on your private costs only, and should have made a different decision if all costs had been considered.
What will be an ideal response?