Scenario: Music Downloads and Streamed Movies Phillip Has an Income

question 149

Multiple Choice

Scenario: Music Downloads and Streamed Movies Phillip has an income of $300 per month, which he uses to purchase two goods, music downloads (MD) and streamed movies (SM) .Each music download costs $1 and each streamed movie costs
$5)
(Scenario: Music Downloads and Streamed Movies) Look at the scenario Music Downloads and Streamed Movies.For Phillip, the horizontal (music download) intercept is:

• A)20.
• B)300.
• C)30.
• D)10.

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Definitions:

Value

The economic worth of a good, service, asset, or company based on the benefits or returns it provides.

Pre-Tax Cost

The expense associated with purchasing or investing before any taxes are applied.

Yield To Maturity

The total return anticipated on a bond if it is held until the date of maturity, accounting for both interest payments and the principal repayment.

Debt

An amount of money borrowed by one party from another, under the condition it is to be paid back usually with interest.