The X-intercept of the budget constraint represents
a. how much of good Y can be purchased if no good X is purchased and all income is spent.
b. how much of good X can be purchased if no good Y is purchased and all income is spent.
c. total income divided by the price of X.
d. b and c.
d
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You are a hotel manager considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table. ProjectBoom (50%)Recession (50%)A$40-$20B-$10$30C$50-$50D$60$60If a manager adopted both project A and project B simultaneously, the expected value of this joint project would be:
A. $40. B. $20. C. $30. D. None of the statements are correct.
In an attempt to keep unemployment rate below its natural rate, many Latin American countries used expansionary fiscal and monetary policies heavily. These policy choices were the main reason why these same countries
a. true b. false