On a Graph We Draw a Consumer's Budget Constraint, Measuring

question 291

Multiple Choice

On a graph we draw a consumer's budget constraint, measuring the number of apples on the horizontal axis and the number of light bulbs on the vertical axis. If the slope of the budget constraint is -2, then

• A)an apple costs twice as much as a light bulb.
• B)the opportunity cost of a light bulb is 2 apples.
• C)the opportunity cost of an apple is one-half of a light bulb.
• D)All of the above are correct.

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Definitions:

English Auctions

A method of sale in which the price ascends and participants bid openly against each other, with the item being sold to the highest bidder.

Sealed-bid Auctions

Auctions in which all bidders simultaneously submit their bids in sealed envelopes, with no bidder knowing the bid of the others.

Common-value Auction

An auction format where the item for sale has the same value for everyone, but bidders have different information about that value.

Oral Auctions

Public sales where goods or services are sold to the highest bidder through verbal bids.