On a Graph We Draw a Consumer's Budget Constraint, Measuring

question 291

Multiple Choice

On a graph we draw a consumer's budget constraint, measuring the number of apples on the horizontal axis and the number of light bulbs on the vertical axis. If the slope of the budget constraint is -2, then

• A)an apple costs twice as much as a light bulb.
• B)the opportunity cost of a light bulb is 2 apples.
• C)the opportunity cost of an apple is one-half of a light bulb.
• D)All of the above are correct.

---

Definitions:

Upward-Sloping Supply Curve

A graphical representation showing that as the price of a good increases, producers are willing and able to supply more of it.

Total Surplus

The sum of consumer and producer surplus, representing the total net benefit to society from the production and consumption of goods and services.

Market for Hamburgers

This refers to the economic market in which buyers and sellers engage in the trade of hamburgers, influenced by factors such as price, demand, and competition.

Scientific Management

One of the earliest approaches to management, was concerned with structuring individual jobs to maximize efficiency and productivity.