Suppose Good X Is on the Horizontal Axis, Good Y

question 127

Multiple Choice

Suppose good X is on the horizontal axis, good Y is on the vertical axis, and the slope of an individual's budget line is -2. Which of the following is true?​

• A)​Good Y is twice as expensive as good X.
• B)​The consumer gives up two units of good Y for each unit of good X she purchases.
• C)​The opportunity cost of good X is one half of a unit of good Y.
• D)​All of the above are correct.

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Definitions:

Affiliated Directors

Affiliated directors are board members who have a relationship with the corporation outside of their directorship, which may influence their decisions, such as being an employee, supplier, or significant shareholder.

Publicly Held Corporation

A corporation whose shares are publicly traded on stock exchanges and owned by members of the public.

Revised Act

Legislation that has been updated or amended to incorporate new information, correct errors, or reflect changes in law or policy.

Derivative Suit

A lawsuit brought by a shareholder on behalf of a corporation against a third party, often the corporation's executives or directors, for wrongs committed against the corporation.