Question 1

-Consider the budget line in the above figure. If the consumer's income is $240, then the price of a movie is

Accepted Answer

The answer of 
-Consider the budget line in the above...

Question 2

Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. What is the maximum amount of pizza Dave can buy each week?

Accepted Answer

Let's assume that Dave buys x pizzas and y magazines.
From the given information, we can create the following equation:
10x + 5y = 200
We need to find the maximum amount of pizza Dave can buy, which means we want to maximize x.
We can rearrange the equation and solve for y:
y = (200 - 10x)/5
y = 40 - 2x
To maximize x, we need to minimize y. The lowest possible value for y is 0, which occurs when x = 20.
If Dave buys 20 pizzas, he will spend $200. Any additional pizzas will cost more than $200 and leave him with less than $5 to spend on magazines, meaning he won't be able to buy any magazines.
Therefore, the maximum amount of pizza Dave can buy is 20.
Option B is the correct answer.

Question 3

-Given the budget line in the above figure, if income is $60, then the price of a pizza is ________ and the price of a CD is ________.

Accepted Answer

The answer of 
-Given the budget line in the above...

Question 4

-Consider the budget line in the above figure. If the consumer's income is $120, then the price of a book is

Accepted Answer

The answer of 
-Consider the budget line in the above...

Question 5

-Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. What is Dave's real income in terms of magazines?

Accepted Answer

The answer of 
-Suppose that Dave has $200 to spend...

Question 6

Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. If Dave buys 20 magazines per week, which of the following amount of pizza is not affordable to him?

Accepted Answer

The answer of Suppose that Dave has $200 to spend...

Question 7

Junkfood Jill spends all of her income on jellybeans and Jolt cola. Suppose that Jill's income is $30, the price of a bag of jellybeans is $6, and the price of a bottle of Jolt cola is $2. Which of the following combinations of jellybeans and Jolt cola lies inside of Jill's budget line?

Accepted Answer

The answer of Junkfood Jill spends all of her income...

Question 8

-Jordan has two goods that he consumes this week. He can choose to go to the arcade and play video games or he can purchase baseball cards. The price of each video game is $.50 and each pack of baseball cards is $1. Jordan will spend all his allowance this week on these two goods. Jordan's consumption possibilities are listed in the table above. What is the amount of Jordan's allowance?

Accepted Answer

The answer of 
-Jordan has two goods that he consumes...

Question 9

-Consider the budget line in the above figure. If the consumer has income of $240, what is the relative price of movies?

Accepted Answer

The answer of 
-Consider the budget line in the above...

Question 10

-Jordan has two goods that he consumes this week. He can choose to go to the arcade and play video games or he can purchase baseball cards. The price of each video game is $.50 and each pack of baseball cards is $1. Jordan will spend all his allowance this week on these two goods. Jordan's consumption possibilities are listed in the table above. For Jordan, what is the opportunity cost of moving from consumption possibility D to E?

Accepted Answer

The opportunity cost of moving from consumption possibility D to E is two video games. This is because Jordan must give up two video games in order to purchase one set of baseball cards.

Question 11

Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. If Dave buys 15 pizza each week, what is the maximum number of magazines can he buy?

Accepted Answer

The answer of Suppose that Dave has $200 to spend...

Question 12

-Consider the budget line in the above figure. If the consumer's income is $120, then the price of a movie is

Accepted Answer

The answer of 
-Consider the budget line in the above...

Question 13

-Consider the budget line in the above figure. If the consumer's income is $240, then the price of a book is

Accepted Answer

The answer of 
-Consider the budget line in the above...

Question 14

-The figure above shows Tanya's consumption possibilities. Tanya spends $100 per month on movies and restaurant meals. The price of a movie ticket is ________ and the price of a restaurant meal is ________.

Accepted Answer

The answer of 
-The figure above shows Tanya's consumption possibilities....

Question 15

-Based on the above figure showing a budget line, which of the following combinations of soda and bottled water are not affordable?

Accepted Answer

The answer of 
-Based on the above figure showing a...

Question 16

-According to the budget line in the above figure, which of the following combinations is unaffordable?

Accepted Answer

The answer of 
-According to the budget line in the...

Question 17

Joe has $50 to spend on pizza and movies. If movies are $5 each and a pizza is $10 then, assuming he spends all his money, he can buy which of the following bundle of goods?

Accepted Answer

The answer of Joe has $50 to spend on pizza...

Question 18

-The figure above shows Tanya's consumption possibilities. Which of the following combinations of goods is not affordable?

Accepted Answer

The answer of 
-The figure above shows Tanya's consumption possibilities....

Question 19

-Jordan has two goods that he consumes this week. He can choose to go to the arcade and play video games or he can purchase baseball cards. The price of each video game is $.50 and each pack of baseball cards is $1. Jordan will spend all his allowance this week on these two goods. Jordan's consumption possibilities are listed in the table above. Which of the following combinations of video games and baseball cards is not attainable for Jordan?

Accepted Answer

Jordan's total allowance is $5 (since 0 video games and 5 sets of baseball cards cost $5). The combination of 10 video games and 3 sets of baseball cards costs $8, which exceeds his allowance.

Question 20

-The figure above shows Tanya's consumption possibilities when the price of a restaurant meal is $20. If the price of a restaurant meal falls to $10 and Tanya buys 12 movie tickets, how many restaurant meals can she buy?

Accepted Answer

The answer of 
-The figure above shows Tanya's consumption possibilities...

Quiz 9: Possibilities, Preferences, and Choices

-Consider the budget line in the above figure. If the consumer's income is $240, then the price of a movie is

Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. What is the maximum amount of pizza Dave can buy each week?

-Given the budget line in the above figure, if income is $60, then the price of a pizza is and the price of a CD is .

-Consider the budget line in the above figure. If the consumer's income is $120, then the price of a book is

-Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. What is Dave's real income in terms of magazines?

Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. If Dave buys 20 magazines per week, which of the following amount of pizza is not affordable to him?

Junkfood Jill spends all of her income on jellybeans and Jolt cola. Suppose that Jill's income is $30, the price of a bag of jellybeans is $6, and the price of a bottle of Jolt cola is $2. Which of the following combinations of jellybeans and Jolt cola lies inside of Jill's budget line?

-Consider the budget line in the above figure. If the consumer has income of $240, what is the relative price of movies?

Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. If Dave buys 15 pizza each week, what is the maximum number of magazines can he buy?

-Consider the budget line in the above figure. If the consumer's income is $120, then the price of a movie is

-Consider the budget line in the above figure. If the consumer's income is $240, then the price of a book is

-The figure above shows Tanya's consumption possibilities. Tanya spends $100 per month on movies and restaurant meals. The price of a movie ticket is and the price of a restaurant meal is .

-Based on the above figure showing a budget line, which of the following combinations of soda and bottled water are not affordable?

-According to the budget line in the above figure, which of the following combinations is unaffordable?

Joe has $50 to spend on pizza and movies. If movies are $5 each and a pizza is $10 then, assuming he spends all his money, he can buy which of the following bundle of goods?

-The figure above shows Tanya's consumption possibilities. Which of the following combinations of goods is not affordable?

-The figure above shows Tanya's consumption possibilities when the price of a restaurant meal is $20. If the price of a restaurant meal falls to $10 and Tanya buys 12 movie tickets, how many restaurant meals can she buy?