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.

---

Definitions:

Idle Capacity

Unused production capability in a given period, often resulting in inefficiency and increased costs.

Supervisory Wages

Costs associated with the salaries of supervisory personnel, considered part of manufacturing overhead in production environments.

Activity-based Costing

Activity-based costing is an accounting method that assigns costs to products based on the activities they require.

Overhead Cost

General expenses related to the day-to-day operations of a business that cannot be directly linked to a specific product or service.