The Quantity of Good a Is Measured Along the Vertical

question 19

Multiple Choice

The quantity of good A is measured along the vertical axis, and the quantity of good B is measures along the horizontal axis. If the price of Good A falls

• A) the vertical intercept of the budget line moves along the vertical axis away from the origin.
• B) the vertical intercept of the budget line moves along the vertical axis toward the origin.
• C) the horizontal intercept (along Good B) of the budget line will increase.
• D) none of the above

---

Definitions:

Functional Specialization

The division of work into specialized tasks or roles to increase efficiency and expertise.

Technical Standpoint

An perspective or opinion that focuses on the technical or practical aspects of a situation.

Horizontal Specialization

A division of work in an organization where tasks are divided among employees on the same hierarchical level, based on expertise or functional areas.

Departmentation

The process of dividing an organization into different departments, which allows for specialization and a more organized structure in managing functions and tasks.