The equation for a budget line for goods X and Y, with Px being the price of X, Py being the price of Y, and B being the budget, can be written as:
A. PxX + PyY = B.
B. PxX + PyY = 1 / B.
C. PxX = B + PyY.
D. PxX / PyY = 1 ? B.
Answer: A
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Suppose everyone in a town prefers spending on improved public transportation systems instead of public parks, and prefers spending on public parks instead of building a public zoo. An ideal voting system would ensure that:
A. public transportation spending could beat zoo funding. B. zoo funding could beat public transportation. C. public parks could beat transportation spending. D. zoo funding could beat public parks.
A supply curve
A) has an indirect or negative relationship between price and quantity supplied. B) has a direct or positive relationship between price and quantity supplied. C) shows the relationship between quantity supplied and income. D) shows the relationship between complements.
A demand relationship in which a given percentage change in price will result in a less than proportionate percentage change in quantity demanded is
A) elastic. B) unit-elastic. C) inelastic. D) consistent with zero elasticity.
Suppose you can fly from your home city to New York but only one airline provides the service. This market would be described by
A. monopoly. B. healthy competition. C. oligopoly. D. perfect competition.