Melissa has an income of $240 a month to spend on tennis lessons and concert tickets. The price of a tennis lesson is $20, and the price of a concert ticket is $40. The slope of Melissa's budget line, with tennis lessons on the horizontal axis, is
A) -2.
B) -0.5.
C) -6.
D) -12.
B
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According to new growth theory, economic growth is driven by
A) new ideas. B) the division of labor. C) positive externalities. D) higher birth rates.
Steve has two goods he can spend his income on, skiing and skating, and his marginal utilities from each are in the table above. The price of each unit of skiing is $10 and the price of each unit of skating is $5. Steve has $40 to spend
What quantities of skiing and skating should Steve consume to maximize his utility? A) 4 units of skiing and 4 units of skating B) 2 units of skiing and 4 units of skating C) 1 unit of skiing and 2 units of skating D) 5 units of skiing and 5 units of skating
Rock climbing areas are often on public lands. These areas, which are often crowded, are classified as
A) rival and excludable. B) non-rival and excludable. C) rival and non-excludable. D) non-rival and non-excludable.
Suppose the nominal interest rate is 4 percent annually, and you deposit $1,000. Inflation in the economy throughout the year is 5 percent. At the end of the year, you have earned:
A. a real rate of return of 1 percent. B. an increase in your purchasing power. C. a nominal increase in your savings of $40. D. All of these statements are true.