Using the figure which depicts your budget constraint when the hourly wage is $15, read the following statements and select the correct two.
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Question

Using the figure which depicts your budget constraint when the hourly wage is $15, read the following statements and select the correct two.

Accepted Answer

The budget constraint is a feasible frontier with a constant marginal rate of transformation.

Answer

The slope of the budget constraint is the negative of the wage rate (–15).

Answer

An increase in the wage rate would cause a parallel upward shift in the budget constraint.

Answer

A gift of $60 would make the budget constraint steeper, with the intercept on the vertical axis increasing to $300.

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