Suppose that Jeremy has a fixed income of $150 per month, which he spends entirely on movies and books. The price of movies is $5 and the price of books is $15. Which of the following combinations does not exhaust his budget?
A. 3 books and 21 movies
B. 6 books and 12 movies
C. 5 books and 17 movies
D. 4 books and 18 movies
Answer: C
You might also like to view...
Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The table below describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day.Employee-HoursPer DayOutputPer Day0014048091201516023200This firm's fixed cost each day is:
A. $66 B. $14 C. $64 D. $50
Why is it more difficult for a firm to calculate the marginal revenue product of a player in the industry of professional sports versus that of a worker in a competitive manufacturing industry?
What will be an ideal response?
Keynes believed that unstable investment caused the Great Depression. Using the simple Keynesian model, explain how a fall in investment affects equilibrium output
What will be an ideal response?
Since 1959, the U.S. has experienced severe recessions in which three periods?
a. 1964-65, 1981-82, and 1990-91 b. 1974-75, 1981-82, and 2008-09 c. 1960-61, 1974-75, and 2008-09 d. 1960-61, 1981-82, and 2008-09 e. 1969-70, 1981-82, and 2008-09