Refer to the graph shown.
Assuming a consumer has $5 to spend, if a soda costs $0.50 and a chocolate bar costs $0.50, the consumer will optimally choose to consume:
A. at point B.
B. 10 cans of soda and 0 chocolate bars.
C. at point A.
D. 0 cans of soda and 10 chocolate bars.
Answer: A
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If you hold money in anticipation of household emergency expense, this represents the::
a. speculative demand for holding money. b. transactions demand for holding money. c. opportunity cost motive for holding money. d. precautionary demand for holding money. e. regressive cost of holding money.
The movement of the vertical _____ curve to the _____ reflects the increase in potential output on account of the development of new technologies, and increase in the quantity and quality of resources
a. long-run aggregate supply; right b. short-run aggregate supply; right c. short-run aggregate demand; left d. long-run aggregate demand curve; left e. long-run aggregate supply; left
Which of the following terms is used to describe payments made by foreign resident workers to families in their home nations or in the form of taxes paid to their home nations?
a. worker redistribution b. worker earnings c. worker remittances d. worker repayments
Suppose Congress enacts investment tax credits to spur more business investment. What impact would this have on the loanable funds market?
a) There would be an increase in supply; the supply curve shifts right. b) There would be a decrease in supply; the supply curve shifts left. c) There would be an increase in demand; the demand curve shifts right. d) There would be a decrease in demand; the demand curve shifts left.