The Marginal Rate of Substitution Is the Slope of the Budget

question 142

True/False

The marginal rate of substitution is the slope of the budget constraint.

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Definitions:

Tax Deduction

An expense that can be subtracted from gross income to reduce the taxable income, resulting in lower taxes owed.

Legally Guaranteed

Ensured or secured by law; having legal promise or assurance.

Private Property

The legal right to own and control property (such as land or buildings) by individuals or corporations.

Profit Making

The activity of earning more money than what is spent on producing or buying goods or services, resulting in financial gain.