Use the Following to Answer Questions

question 264

Multiple Choice

Use the following to answer questions:
Figure: Harold's Indifference Curves
The figure shows three of Harold's indifference curves for bread and cheese.
-(Figure: Harold's Indifference Curves) Look at the figure Harold's Indifference Curves. If the price of bread is $2 per loaf, the price of cheese is $4 per pound, and Harold has $28 to spend on bread and cheese, Harold's optimal consumption bundle is _____ loaves of bread and _____ pounds of cheese.

• A) 6; 4
• B) 4; 3
• C) 3; 2
• D) 2; 8

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Definitions:

Economic Factor

An element that influences the performance or outcomes of an economy, such as interest rates, inflation, or unemployment rates.

PEST Analysis

A strategic business tool used to identify and analyze the Political, Economic, Social, and Technological factors that may impact a project or venture.

Offshoring Backlash

A negative response or movement against the practice of moving jobs and services to other countries to benefit from lower costs.

Political Factor

Refers to governmental influences that can affect the operation and profitability of businesses, including laws, policies, and political stability.