Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Mr. Lingle's budget constraint is AC. Point C is
A. not in Mr. Lingle's opportunity set but is on his budget constraint.
B. an available option and Mr. Lingle does not spend all of his income.
C. an available option and Mr. Lingle exactly spends all of his income.
D. not available because it represents a combination of gardenburgers and beer that Mr. Lingle cannot purchase with his current income.
Answer: C
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The slope of the LM curve has been shown to depend most crucially on the interest elasticity of
a. consumption. b. saving. c. money demand. d. investment.
Total surplus:
A. can never be negative.
B. is always zero in an efficient market.
C. can be negative when the market is not in equilibrium.
D. is greater than the sum of consumer and producer surplus.
A country purchases $3 billion of foreign-produced goods and services and sells $2 billion dollars of domestically produced goods and services to foreign countries. It has
a. exports of $3 billion and a trade surplus of $1 billion. b. exports of $3 billion and a trade deficit of $1 billion. c. exports of $2 billion and a trade surplus of $1 billion. d. exports of $2 billion and a trade deficit of $1 billion.
An increase in future price expectations may act like a cost shock, shifting the aggregate supply curve to the left.
Answer the following statement true (T) or false (F)