Pakistan's best MCQs practice hub — FPSC · PPSC · CSS · NTS · Other Exams
Login

The slope of the budget line is determined by:

AThe ratio of the prices of the two goods (Px / Py)
BTotal utility derived from both goods
CThe marginal cost of production
DConsumer income level alone

Explanation

The budget line slope equals the negative price ratio (-Px/Py), representing the market trade-off rate between two goods.

Submitted by: mcqstutor Team More Economics MCQs →

No Comments

Leave a comment

Your email address will not be published. Required fields are marked *