Sam Has $200 a Month to Spend on Either Tanning

question 50

Multiple Choice

Sam has $200 a month to spend on either tanning sessions or rounds of golf. Tanning sessions are $20 each and a round of golf is $50. Which of the following would be a point on Sam's budget constraint?

• A)20 tanning sessions and 8 rounds of golf
• B)10 tanning sessions and 5 rounds of golf
• C)10 tanning sessions and 4 rounds of golf
• D)5 Tanning sessions and 2 rounds of golf

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Definitions:

Management Fees

Charges levied by an investment manager for managing an investment fund's holdings.

Closed-end Funds

Investment funds with a fixed number of shares, traded on stock exchanges, potentially at prices above or below their net asset values.

Open-end Funds

Mutual funds that continuously issue new shares to investors and buy back shares when investors wish to sell, with prices determined by the net asset value.

Equity Funds

Mutual funds or other types of investment funds that invest primarily in stocks, seeking to provide returns through equity ownership.