Consider the budget line in the above figure. If the consumer's income is $240, then the price of a book is
A) $20 per book.
B) $24 per book.
C) $12 per book.
D) More information is needed to determine the price of a book.
B
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According to the intertemporal substitution effect, a higher price level
A) decreases the quantity of real GDP demanded. B) lowers the costs of building new plants and equipment. C) increases the quantity of real GDP demanded. D) makes it less costly for people to buy houses and cars.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.
Suppose you have a collection of gold coins from the 19th century. Comment on their suitability to provide for you each of the three functions of money
What will be an ideal response?
Suppose Jamaica has an absolute advantage over other countries in producing sugar, but other countries have a comparative advantage over Jamaica in producing sugar. If trade in sugar is allowed, Jamaica
a. will import sugar. b. will export sugar. c. will either import sugar or export sugar, but it is not clear from the given information. d. would have nothing to gain either from exporting or importing sugar.