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

Question

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

Quizplus · Accepted Answer

The real income in terms of magazines is calculated by dividing the total income by the price of one magazine. If the budget line indicates that $60 can buy 12 magazines, then the real income is 12 magazines.

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