With the quantity of good x measured on the horizontal axis


1. With the quantity of good x measured on the horizontal axis and the quantity of good y measured on the vertical axis, the absolute slope of a budget line is equal to:

a. MUy/MUx

b. Px/Py

c. income

d. income/Py

e. MUx/Px

2. If the composite good convention is adopted so that expenditure on all other goods is measured on the vertical axis, then the vertical intercept for the budget line is equal to

a. the price of good X

b. $1

c. the amount of money the consumer chooses to spend on good Y

d. the consumer's budget or income

e. $1 / price of good Y

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Business Economics: With the quantity of good x measured on the horizontal axis
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