In Producing a Budget Constraint Line for Combinations of Staples

question 70

Multiple Choice

In producing a budget constraint line for combinations of staples and paper clips,which are sold by the box,a student labels the points (0,5) and (10,0) along the line.Staples occupy the vertical axis,while paper clips are situated on the horizontal axis.Therefore,boxes of

• A) staples cost twice as much as boxes of paper clips.
• B) paper clips cost twice as much as boxes of staples.
• C) staples cost $10.
• D) paper clips cost $5.
• E) staples cost the same as boxes of paper clips.

---

Definitions:

Government Intervention

Actions undertaken by a government to influence or directly manage the economy, which can include regulations, subsidies, tariffs, and public services.

Redemption Program

A redemption program is a scheme where points, coupons, or other types of credit are exchanged for goods, services, or a monetary reward.

Unredeemed Containers

Items such as bottles or cans that are not returned for a deposit, often creating recycling or waste management challenges.

Fee Increase

An adjustment that results in the rise of charges or fees for services or goods.