Assume the price of beer is $4, the price of pizza is $10 and the consumer's income is $250. Which consumption bundle will NOT be the consumer's choice?
A) A (5 Beers, 5 Pizzas)
B) B (0 Beers, 25 Pizzas)
C) C (25 Beers, 15 Pizzas)
D) None of the above bundles will be chosen.
A
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Suppose good X is on the horizontal axis, good Y is on the vertical axis, and the slope of an individual's budget line is -2. Which of the following is true??
a. Good Y is twice as expensive as good X b. ?The consumer gives up two units of good Y for each unit of good X she purchases. c. ?The opportunity cost of good X is one half of a unit of good Y. d. ?All of the above are correct.
Under a relative concept of poverty, poverty
a. doesn't really exist. b. is higher in rich countries than in poor countries. c. can never be wholly eliminated by public policy. d. declines as technology advances.
Since a monopolist has a unique product, it makes no sense for the firm to advertise
a. True b. False Indicate whether the statement is true or false
Industrial policies are:
A. government investments in certain industries to encourage growth in those industries. B. favorable tax policies to encourage private domestic investment in certain industries. C. favorable trade policies to encourage private investment in certain industries. D. All of these are true.