Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Mr. Lingle?s budget constraint is AC. Point A is
A. not in Mr. Lingle's opportunity set but is on his budget constraint.
B. an available option and Mr. Lingle exactly spends all of his income.
C. an available option and Mr. Lingle does not spend all of his income.
D. not available because it represents a combination of gardenburgers and beer that Mr. Lingle cannot purchase with his current income.
Answer: B
You might also like to view...
Fractional reserve banking
According to the circular flow model, ________.
A. net investment must equal gross investment B. income must equal expenditures C. exports must equal imports D. saving must equal investment
Which of the following results in a positive externality?
A) Visiting a beach B) Recycling of waste C) Buying a room heater D) Following a healthy lifestyle
Mike owns a car worth $20,000, and that is his only wealth. There is a 10 percent chance that Mike will have an accident within a year. If he does have an accident, his car is worthless. What is Mike's expected wealth?
What will be an ideal response?