Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Mr. Lingle?s budget constraint is AC. Point D is
A. an available option and Mr. Lingle does not spend all of his income.
B. an available option and Mr. Lingle exactly spends all of his income.
C. in Mr. Lingle's opportunity set but is not on his budget constraint.
D. not available because it represents a combination of gardenburgers and beer that Mr. Lingle cannot purchase with his current income.
Answer: D
You might also like to view...
In the above figure, the equilibrium level of planned saving plus net taxes is
A) $1.0 trillion. B) $2.0 trillion. C) $3.0 trillion. D) $4.0 trillion.
A business owner makes 50 items a day. He spends 8 hours in producing those items. If hired elsewhere he could have earned $10 an hour. The item sells for $10 each. Production occurs seven days a week. If the explicit costs total $10,000 a month, the accounting profit for the month equals:
a. $1,760 b. $2,240 c. $11,760 d. $5,000