The Slope of the Budget Constraint Is Determined by the

question 552

Multiple Choice

The slope of the budget constraint is determined by the

• A)relative price of the goods measured on the axes.
• B)relative price of the goods measured on the axes and the consumer's income.
• C)endowment of productive resources.
• D)preferences of the consumer.

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Definitions:

Independent Variables

Variables in a statistical or mathematical model that are manipulated or have their values set externally to observe or measure their effect on dependent variables.

Degrees of Freedom

The number of independent values or quantities which can vary in the calculation of a statistic.

Critical Value of F

The threshold value determined from an F-distribution, given a certain significance level, used in analysis of variance (ANOVA) to decide whether to reject the null hypothesis of equal variances.

Predictor Variables

Variables in a statistical model that are used to predict or explain changes in the response variable.