Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. AC represents Tom's budget constraint. Point E then represents a point that is
A. outside his opportunity set but not on his budget constraint.
B. available, but at which he does not spend all his income.
C. an available option, as Tom is just spending all of his income.
D. not available because it represents a combination of hamburgers and hot dogs that he cannot purchase with his income.
Answer: B
You might also like to view...
If the government's budget deficit increases and the Ricardo-Barro effect does not apply
A) the real interest rate rises. B) investment increases. C) investment decreases. D) Both answers A and C are correct.
Compare and contrast the predictions of the Heckscher-Ohlin and classical models about likely trading partners of various countries with the predictions of the Linder hypothesis
What will be an ideal response?
Does history suggest that most technological progress is labor-saving or labor-augmenting?
Which of the following correctly describes the trend in the percentage of U.S. families living in poverty?
a. The poverty rate has steadily increased from approximately 5 percent in 1960 to over 40 percent in 1997. b. The poverty rate has steadily declined from approximately 40 percent in 1960 to under 5 percent today. c. The poverty rate steadily declined from about 22 percent in 1959 to about 12 percent in 1969, and has fluctuated since then. The poverty rate in 2002 was approximately 12.1 percent. d. The poverty rate steadily increased from about 12 percent in 1960 to about 22 percent in 1970, and has fluctuated since then.