Joe's Budget Constraint Equals 500 = 2F + 100S,where $500

question 123

Multiple Choice

Joe's budget constraint equals 500 = 2F + 100S,where $500 is Joe's income,$2 is the price of food (F) and $100 is the price of shelter (S) .How much food can Joe buy if he buys one unit of shelter?

• A)two units
• B)200 units
• C)250 units
• D)400 units

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Definitions:

Earnings Per Share

A measure of a company's profitability, calculated as the net income divided by the number of outstanding shares of its common stock.

Return On

A financial ratio indicating the profitability of an investment compared to its cost.

Stockholders' Equity

Refers to the residual interest in the assets of a corporation after deducting its liabilities.

Common Stockholders' Equity

The portion of a company's equity that is attributable to common stock holders, calculated as the difference between total assets and total liabilities, excluding preferred shares.