Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is CD. Molly's income is $75, the price of a DVD is $3 and the price of a CD is $5. At point D, she is buying ________ DVDs and ________ CDs.
A. 0; 15
B. 50; 30
C. 25; 15
D. 25; 0
Answer: D
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Cooperation among people in an urban, industrialized society
A) becomes more difficult as transaction costs increase. B) is dependent upon people having a detailed, specific knowledge of the wants and abilities of others. C) is impossible once the number increases beyond a few thousand. D) requires coordination by central-planning committees. E) will not occur unless most people approve of the goals and values of others.
The declining cost of computer technology has made ________ a reality
A) brick and mortar banking B) commercial banking C) virtual banking D) investment banking
The PPF determines
A) all possible outcomes for a given wage. B) the set of feasible outcomes. C) given leisure, how much consumption a household wants. D) the share of consumption in output.
In a fixed exchange rate system, rates are maintained by the central bank's ongoing purchases and sales of currencies
a. True b. False