-The figure above gives your budget line for magazines and CDs per month. Given that your income equals $60 per month, what is your real income in terms of magazines?
A) 6 magazines
B) $60/month
C) 2 magazines
D) 12 magazines

Question

-The figure above gives your budget line for magazines and CDs per month. Given that your income equals $60 per month, what is your real income in terms of magazines?
A) 6 magazines 
B) $60/month 
C) 2 magazines 
D) 12 magazines

Quizplus · Accepted Answer

Your real income in terms of magazines is determined by how many magazines you can buy with your total income if you spend all of it on magazines. If the budget line indicates the maximum number of magazines you can buy with $60, and that number is 12, then your real income in terms of magazines is 12 magazines.

-The Figure Above Gives Your Budget Line for Magazines and CDs