The Slope of the Budget Constraint Line Is

question 14

Multiple Choice

The slope of the budget constraint line is

• A) the ratio of the prices (P_x/P_y).
• B) the negative of the ratio of the prices (P_x/P_y).
• C) the ratio of income divided by price of Y (I/P_y).
• D) none of these.

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Definitions:

Department Viability

An assessment of a department’s ability to continue operating effectively, often considering its financial performance and strategic fit within an organization.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a specific period.

Departmental Contribution Margin

Departmental Contribution Margin refers to the contribution margin as calculated for specific departments within a company, showing the profit contribution of each department.

Separate Accounting Records

The practice of maintaining distinct records for different parts of a business's operations or for individual entities, ensuring clarity and precision in financial tracking.