The Roomba 980 Is a Robotic Vacuum Cleaner Made and Sold

question 62

Multiple Choice

The Roomba 980 is a robotic vacuum cleaner made and sold by iRobot. It can vacuum 4 rooms on a single battery charge and it costs $10 worth of electricity to charge the Roomba. Lynn is a house cleaner and can vacuum 4 rooms in 1/2 hour with a traditional vacuum. Suppose you want the 4 rooms in your house vacuumed once a week for one year. Ignoring the cost of any electricity Lynn uses, which method is economically efficient if Lynn charges $20 per hour? $30 per hour?

• A) Lynn if she charges $20 or $30 per hour
• B) Lynn if she charges $20 per hour and Roomba if Lynn charges $30 per hour
• C) Roomba if Lynn charges $20 per hour and Lynn if she charges $30 per hour
• D) Roomba if Lynn charges $20 or $30 per hour

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Definitions:

Banking System

The structure of banks and financial institutions within an economy, which provides financial services including deposits, loans, and currency exchange.

M2

A measure of the money supply that includes cash, checking deposits, and easily convertible near money.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash and bank deposits.

Narrow Measure

A term often used in economics and finance to refer to a specific, targeted way of measuring an aspect of the economy or market.