The Absolute Value of the Slope of the Budget Constraint

question 115

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 good on the vertical axis divided by the price of the good on the horizontal axis.
• C)the price of good on the horizontal axis divided by the price of the good on the vertical axis.
• D)the quantity of the good on the vertical axis divided by the quantity of the good on the horizontal axis.

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Definitions:

Reward

An outcome or event that strengthens the likelihood of a behavior by providing a positive consequence or satisfaction to the subject.

Intrinsic Motivation

Motivation driven by an interest or enjoyment in the task itself, rather than relying on external pressures or rewards.

Extrinsic Motivation

The drive to perform actions or engage in activities due to external rewards or pressures rather than for intrinsic satisfaction.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, and praise.