-Rick's Income Is $54 a Week and He Spends All

question 14

Multiple Choice

-Rick's income is $54 a week and he spends all of it on CDs and sandwiches. The price of a CD is $18 and the price of a sandwich is $3. The figure above illustrates Rick's preferences. At Rick's best affordable point, the marginal rate of substitution is

• A) 6 sandwiches per CD.
• B) 3 sandwiches per CD.
• C) 2 sandwiches per CD.
• D) 1/6 of a sandwich per CD.

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Definitions:

Efficiency

The ability to accomplish a task or job with the minimum expenditure of time and effort.

Margaret Sanger

An American birth control activist, sex educator, and nurse who helped legalize contraception and founded the organization that became Planned Parenthood.

Birth-Control Devices

Any number of instruments or medications designed to prevent pregnancy as part of family planning.

Socialist Power

Describes a political ideology emphasizing the control of the means of production, distribution, and exchange by the community as a whole.