The Absolute Value of the Slope of the Budget Constraint

question 95

Multiple Choice

The absolute value of the slope of the budget constraint is equal to

• A)the marginal rate of substitution between the two goods in question.
• B)the price of the good on the vertical axis divided by the price of the good on the horizontal axis.
• C)the price of the good on the horizontal axis divided by the price of the good on the vertical axis.
• D)quantity of the good on the vertical axis divided by the quantity of the good on the horizontal axis.

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Definitions:

Transtheoretical Model

A theory of behavior change that outlines six stages of change individuals go through when modifying behavior.

Contemplation Stage

A phase in the Transtheoretical Model of behavior change where individuals are thinking about changing a behavior but have not yet taken action.

Seriously Quitting

The sincere intent and subsequent action to permanently stop engaging in a harmful behavior, such as smoking or drinking alcohol.

Behavioral Theory

A framework that explains how behaviors are learned and maintained through interactions with the environment, including reinforcements and punishments.