The Slope of the Budget Constraint Is All of the Following

question 72

Multiple Choice

The slope of the budget constraint is all of the following except

• A) the relative price of two goods.
• B) the rate at which a consumer can trade one good for another.
• C) the marginal rate of substitution.
• D) constant.

Recognize the relationship between budgeting and performance evaluation.

Learn about continuous budgeting and its benefit for future planning.

Understand the basic concepts and components of the budgeting process.

Differentiate between various types of budgets within a company's budgeting process.

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Definitions:

Nonrival Consumption

A characteristic of goods where one person's consumption does not reduce availability or enjoyment of the good for others.

Nonexcludable

A characteristic of a good whereby it is not possible to prevent individuals from consuming the good once it has been provided.

Radio Signal

An electronic transmission of electromagnetic waves that can carry audio, data, or video signals.

Marginal Cost

The charge for generating one more unit of a product or service.