Karen, Tara, and Chelsea each buy ice cream and paperback novels to enjoy on hot summer days. Ice cream costs $5 per gallon, and paperback novels cost $8 each. Karen has a budget of $80, Tara has a budget of $60, and Chelsea has a budget of $40 to spend on ice cream and paperback novels. Who can afford to purchase 5 gallons of ice cream and 8 paperback novels?
a. Karen, Tara, and Chelsea
b. Karen only
c. Tara and Chelsea but not Karen
d. none of the women
d
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Which of the following goods is the best example of a public good?
a. garbage-collection services that are provided by a municipal government b. music that is broadcast over the airwaves by a privately-owned FM radio station c. electricity that is provided to farmhouses by a rural electric cooperative d. cable TV services that are provided by a privately-owned firm that is regulated by the government of the city in which it operates
The overall behavior of the economy:
A. is remarkably stable over time. B. differs over time as prices become increasingly flexible in the months and years following a shock. C. differs over time as prices become increasingly sticky in the months and years following a shock. D. is easily controlled and stabilized by government policy.