Which One of the Following Regarding to an Individual's Budget

question 21

Multiple Choice

Which one of the following regarding to an individual's budget constraint is correct?

• A) The slope of the budget constraint is determined by the reservation wage rate
• B) The slope of the budget constraint is higher for a full-time worker than for a part-time worker.
• C) The slope of the budget constraint is determined by the market wage rate.
• D) The level of non-labour income is higher for a part-time worker than for a full-time worker
• E) The level of non-labour income determines the intercept of the budget constraint.

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Definitions:

Variability

The extent to which data points in a data set or distribution differ from each other and from the central value (mean or median).

Mean

The statistical measure that divides the sum of all values in a data set by the number of values, commonly known as the average.

Median

A statistical measure representing the middle value in a data set, where half the numbers are above and half are below it.

Median

The middle value in a list of numbers, which separates the higher half from the lower half.