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.

---

Definitions:

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have predicted it beforehand, often referred to as the "I-knew-it-all-along" phenomenon.

Political Election

A formal group decision-making process by which a population chooses an individual to hold public office.

Predicted Outcome

An anticipated result or consequence based on certain conditions or variables.

Personality Psychology

A branch of psychology focused on studying individual differences in thought patterns, feelings, and behaviors, and how these traits persist over time.