Assume Bonnie has $64 to spend on hairbands and earrings. Her budget constraint is shown in the graph shown. Which of the following can be said about Bonnie's choices?
A. Hairbands must cost $8 each.
B. Earrings must cost $16 each.
C. Bonnie can buy twice as many hairbands as earrings.
D. All of these are true.
Answer: D
You might also like to view...
Ann Marie is a Tea-Party Republican, but she decides to vote in the Democratic primary in order to vote against the most liberal candidate. This is an example of strategic voting
Indicate whether the statement is true or false
Generally, as goods are more broadly defined,
a. demand becomes more price elastic b. demand becomes less price elastic c. total expenditure falls as the price decreases d. the demand curve becomes straighter e. more substitute goods can be identified
When the Fed increases the money supply and creates inflation, it erodes the real value of the unit of account and makes it more difficult for investors to sort successful from unsuccessful firms
a. True b. False Indicate whether the statement is true or false
Which of the following sources of productivity is the most difficult to acquire?
A. experience B. training C. education D. talent