If You Have an Income of $40 to Spend, Commodity

question 11

Multiple Choice

If you have an income of $40 to spend, commodity 1 costs $2 per unit, and commodity 2 costs $10 per unit, then the equation for your budget line can be written

• A)x₁ + 5x₂ = 20.
• B)x₁/2+x₂/10 = 40.
• C)(x₁ + x₂)/12 = 40.
• D)3x₁ + 11x₂ = 41.
• E)12(x₁ + x₂)= 40.

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Definitions:

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 (impossible) and 1 (certain).

Variance

A statistical measure that represents the degree of spread or dispersion of a set of values from their mean.

Probability

The quantification of the probability that an event will happen, represented as a number ranging from 0 to 1.

Crashing

A project management technique used to reduce the time for project completion through the increase of resources on critical tasks.