A Consumer's Budget Constraint Changes Slope Whenever

question 34

Multiple Choice

A consumer's budget constraint changes slope whenever:

• A) the consumer buys a different combination of goods.
• B) relative prices change.
• C) the consumer's income increases.
• D) an indifference curve is tangent to it.
• E) absolute prices change.

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Definitions:

Price/Earnings Ratio

A financial ratio that measures a company's share price relative to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Dividend Yield

A monetary ratio demonstrating the proportion of yearly dividends distributed by a corporation in relation to its share value.

Common Stock

The basic voting stock issued by a corporation.