Assume that a consumer has a given budget or income of $12, and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. Refer to the information given above. If the consumer spent all of her
budget on just apples or just bananas, how many apples or bananas maximum would she be able to buy?
A. 12 apples or 8 bananas
B. 8 apples or 12 bananas
C. 16 apples or 12 bananas
D. 8 apples or 16 bananas
Answer: D
You might also like to view...
Which of the following have to be true about functions in the duality picture:
A. The expenditure function is homogeneous of degree 1 in prices. B. The compensated demand functions are homogeneous of degree 1 in prices. C. The uncompensated demand functions are homogeneous of degree 1 in prices. D. Both (a) and (b). E. Both (b) and (c). F. Both (a) and (c). G. All of the above. H. None of the above.
When a positive externality exists, _______________________ and thus _______________ intervention may be needed to achieve efficiency.
A. external costs are necessarily greater than private costs; government B. social costs equal private costs; no government C. social costs are less than private costs; government D. social costs are greater than private costs; government E. none of the above
In finance, leverage is using:
A. the equity one owns to pay for investments planned in the future. B. borrowed money to pay for investments. C. forecasted future earnings to pay for current loans. D. predicted earnings to pay for current investments.
The following figure shows the domestic demand (Dd) and domestic supply (Sd) curves of mopeds in a country before an import quota is imposed by the government. After the imposition of the quota, the maximum import quantity is QQ.
After the quota is imposed, the domestic consumers
A. lose $22.5 million. B. gain $52.5 million. C. lose $82.5 million. D. lose $7.5 million.