When Speaking of the Price of the Good Measured on the Horizontal

question 90

Multiple Choice

When speaking of the price of the good measured on the horizontal axis relative to the price of the good measured on the vertical axis, which statement is true?

• A)The steeper the slope of the budget line, the more expensive the good measured on the horizontal axis.
• B)The steeper the slope of the budget line, the less expensive the good measured on the horizontal axis.
• C)The steeper the slope of the budget line, the more expensive the good measured on the vertical axis.
• D)The slope of the budget line is independent of relative prices.
• E)The flatter the slope of the budget line, the more expensive the good measured on the horizontal axis.

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Definitions:

Operations

Operations refer to the day-to-day activities involved in the running of a business for the purpose of producing value for the stakeholders; it encompasses everything from manufacturing goods to providing services.

Division of Income

The allocation of profit among different heads or sections for financial analysis or taxation purposes.

Capital Contributions

The funds or assets contributed to a company by its owners or shareholders to increase equity.