Refer to the Budget Line Shown in the Diagram

question 331

Multiple Choice

Refer to the budget line shown in the diagram. If the consumer's money income is $20, the

• A)prices of C and D cannot be determined.
• B)price of C is $2 and the price of D is $4.
• C)consumer can obtain a combination of 5 units of both C and D.
• D)price of C is $4 and the price of D is $2.

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Definitions:

Ordinary General Annuity

An annuity where payments are made at the end of each period, such as monthly or annually, in contrast to at the beginning.

Future Value

The predicted amount of money that an investment will grow to at a specific date in the future, considering a certain rate of interest or growth.

Accurate To The Cent

A high level of precision in financial calculations, indicating that amounts are exact to the smallest denomination of currency.

Ordinary General Annuity

A chain of consistent payment transactions transpiring at the end of regular intervals within a set duration.