When the Price of One Good Changes,while the Prices of All

question 121

Multiple Choice

When the price of one good changes,while the prices of all others stay the same:

• A) the change in relative prices is reflected in a change in the slope of the budget constraint.
• B) the change in relative prices can be thought of as a change in the opportunity costs of each good.
• C) the change in relative prices is reflected in a change in the marginal utility per dollar spent on each good.
• D) All of these statements are true.

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Definitions:

Benefit Expense

The costs incurred by a company for the health benefits, retirement benefits, and other perks offered to employees.

Postretirement Benefit Plans

Plans offered by employers that provide benefits, such as health insurance and pensions, to employees after they retire.

Pension Plans

Retirement plans funded by employers or individuals, where savings are invested to provide future benefits to retirees.

Plan Sponsor's Balance Sheet

A financial statement that shows the financial condition of an entity that sponsors a retirement plan, including assets, liabilities, and net worth.