Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hot dog is $2.00. Tom's monthly income is
A. $40.
B. $60.
C. $80.
D. $100.
Answer: C
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Frank owns an apple farm and plans to spend 4 hours today picking apples. The number of apples he can pick per hour depends on the total number of hours he spends working in either the east orchard or the west orchard in the manner shown in the table below.Hours inEastOrchardNumber ofApples PerHourHours inWestOrchardNumber ofApples PerHour140110232210325310420410How should Frank divide his time between the east and the west orchard?
A. He should spend all 4 hours in the east orchard. B. He should spend 2 hours in east orchard and 2 hours in the west orchard. C. He should spend 3 hours in the east orchard and 1 hour in the west orchard. D. He should spend 1 hour in the east orchard and 3 hours in the west orchard.
A theory of saving is necessarily a theory of consumption, because ________
A) by definition, any unit of disposable income that is not a consumption expenditure is a unit of saving B) consumption decisions are made after saving has occurred C) private saving is equal to private investment D) the goal of consumption choices is to achieve the desired level of savings
If Arnold has a positive rate of time preference, he desires to
a. save in case of inflation b. consume now rather than later c. invest in stocks and bonds d. invest in education e. plan for retirement
Teachers often earn less than truck drivers because
a. teachers could switch to trucking more easily than truckers could switch to teaching b. trucking is a riskier occupation c. truckers require greater education d. teachers have more job mobility e. trucking has a higher social status