Suppose a Consumer Purchases Pizza and Soft Drinks

question 3

Multiple Choice

Suppose a consumer purchases pizza and soft drinks.If pizza is measured on the vertical axis and soft drinks are measured on the horizontal axis,then the slope of the budget line is equal to

• A) The price of pizza divided by the price of soft drinks
• B) The price of soft drinks divided by the price of pizza
• C) The price of pizza divided by the price of soft drinks times negative one
• D) The price of soft drinks divided by the price of pizza times negative one

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Definitions:

Cash Balance Plans

A type of pension plan where an employer credits a participant's account with a set percentage of their yearly compensation plus interest charges.

Defined-benefit Plans

Retirement plans in which an employer promises a specified pension payment upon retirement, based on the employee's earnings history, tenure of service, and age.

Defined-contribution Plans

A type of retirement plan where an employer, employee, or both make contributions on a regular basis, but future benefits depend on the investment's performance.