Kristen has an income of $450 per year to spend on music CDs and movies on DVDs. The price of a CD is $15 and the price of a DVD is $22.50. The indifference curves in the figure above (I1, I2, and I3 ) reflect Kristen's preferences
What is Kristen's best affordable combination of DVDs and CDs? A) 10 DVDs and 15 CDs per year
B) 15 DVDs and 12 CDs per year
C) 12.5 DVDs and 12 CDs per year
D) 5 DVDs and 18 CDs per year
A
Economics
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Economic freedom is a precondition for economic growth. Which of the following is a characteristic of economic freedom? i. A democratic form of government ii. Property rights must be protected. iii
The government must support and pay for inventions and innovations. A) i only B) ii only C) Both i and ii D) Both ii and iii E) Both i and iii
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The average propensity to consume (C/Y) for the period 1970 to 1991 ranged between
a. 0 and - 0.80 b. 0 and 0.01 c. 0.65 and 0.80 d. 0.95 and 1.00 e. 1.20 and 1.50
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