The figure above shows Ronald's budget line. He has a weekly income of $20, which he spends on hotdogs and hamburgers. Ronald's real income in terms of hamburgers ________
A) depends on the quantity of hamburgers consumed
B) depends on the quantity of hotdogs consumed
C) is $20
D) is 10 hamburgers
D
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Refer to Figure 15-9. What is the difference between the monopoly output and the perfectly competitive output?
A) 140 units B) 240 units C) 340 units D) 560 units
Milton Friedman first proposed the hypothesis that individuals consume a fraction of their expected, or ________, income
A) disposable B) net C) attainable D) permanent E) life-cycle
A firm that is a price taker can
a. substantially change the market price of its product by changing its level of production. b. sell all of its output at the market price. c. sell some of its output at a price higher than the market price. d. decide what price to charge for its product.
How do economists define the opportunity cost of producing something?
a. all the options given up when a choice is made b. the value of the best alternative that was not pursued c. the average debt incurred to establish a business d. the financial risk involved in pursuing an opportunity