Suppose that the quantity of good y is measured along the vertical axis and that the quantity of good x is measured along the horizontal axis. If the price of good x is $5 and the price of good y is $10 when income is $200 per time period, the slope of
the consumer's budget constraint will be
A) -0.5.
B) -2.
C) -5.
D) -10.
Answer: A
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A curved line may have a positive slope or a negative slope, but it cannot have both positive and negative areas of slope
a. True b. False
The discount rate is the rate of interest charged on loans from ________ to ________.
A. commercial banks; the Federal Reserve B. the Federal Reserve; commercial banks C. the U.S. Treasury; commercial banks D. the Federal Reserve; the U.S. Treasury
Table 5.3National Income Accounts (dollar figures are in billions)Expenditures for consumer goods and services$8,200Exports$1,700Government purchases of goods and services$2,500Social Security taxes$1,900Net investment$1,400Indirect business taxes$1,400Imports$1,900Gross investment$1,800Corporate income taxes$600Personal income taxes$1,500Corporate retained earnings$130Net foreign factor income$100Government transfer payments to households$1600Net interest payments to households$500On the basis of Table 5.3, the value of the income aggregate that is defined as "after-tax income of consumers" (also known as disposable income) is
A. $10,070 billion. B. $10,600 billion. C. $8,570 billion. D. $11,570 billion.
If the price of inputs decreases, the
A. demand curve will shift to the left. B. demand curve will shift to the right. C. supply curve will shift to the right. D. supply curve will shift to the left.