-Max Has Allocated $100 Toward Meats for His Barbecue

question 82

Multiple Choice

-Max has allocated $100 toward meats for his barbecue.His budget line and an indifference map are shown in the above figure.What happens if Max's mother gives him 30 pounds of burger?

• A) Max would have preferred receiving the dollar value of the burger.
• B) Max is indifferent between this gift and the dollar value of the burger.
• C) Max prefers this gift to the dollar value of the burger.
• D) None of the above.

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Definitions:

Mutual Fund Shares

Investments representing units of ownership in a mutual fund, where the fund pools money from many investors to purchase a diversified portfolio of securities.

Macroeconomist

An economist who studies broad economic factors, including inflation, national income, and unemployment, and how they interact on a large scale.

Budget Deficit

The situation where a government's expenses exceed its revenues over a specified period of time.

Budget Surplus

A financial situation where a government's income exceeds its expenditures over a given period.