A Change in the Price of the Good Measured on the Horizontal

question 10

Multiple Choice

A change in the price of the good measured on the horizontal axis changes ________ of the budget line.

• A)the slope and y-intercept
• B)the slope and x-intercept
• C)the x- and y-intercepts but not the slope
• D)only the slope
• E)only the y-intercept

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Definitions:

Limited Liability

The liability of the owners of a corporation is limited to the value of the shares in the firm that they own.

Proprietorship

An unincorporated business firm owned by just one person.

Corporation

A legal entity that is separate from its owners, offering limited liability to its shareholders, and having the ability to enter into contracts, loan and borrow money, sue and be sued.

Financial Intermediary

An institution that facilitates the channeling of funds between lenders and borrowers, such as banks, investment funds, and insurance companies.