The Slope of the Budget Constraint Is All of the Following

question 37

Multiple Choice

The slope of the budget constraint is all of the following except

• A)the relative price of two goods.
• B)the rate at which a consumer can afford to trade one good for another.
• C)the marginal rate of substitution.
• D)constant.

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Definitions:

Retained Earnings

The share of a company's earnings that are held back and not distributed as dividends to its shareholders.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's financial performance.

Retained Earnings

The part of net profits that is not distributed as dividends but is kept by the company for reinvestment in its primary business or for debt repayment.

Dividends Declared

Profits distributed by a company to its shareholders, usually determined by the company's board of directors.