If Goldie Chooses the Bundle (6, 6)when Prices Are ($6

question 52

Multiple Choice

If Goldie chooses the bundle (6, 6) when prices are ($6, $2) and the bundle (10, 0) when prices are ($2, $5) ,

• A)the bundle (6, 6)is revealed preferred to (10, 0)but there is no evidence that she violates WARP.
• B)neither bundle is revealed preferred to the other.
• C)Goldie violates WARP.
• D)the bundle (10, 0)is revealed preferred to (6, 6)and she violates WARP.
• E)the bundle (10, 0)is revealed preferred to (6, 6)and there is no evidence that she violates WARP.

---

Definitions:

Banking Day

A banking day is any day that a bank is open to the public for business. Generally, a banking business transacted after this time is usually considered to be the next day’s business. Saturdays, Sundays, and federal holidays are usually not considered banking days.

SUTA Limit

The maximum amount of earnings on which an employer is required to pay State Unemployment Tax Act taxes.

Wages Payable

An accounting term for the amount owed to employees for work performed that has not yet been paid.

Cash

Liquid currency and coins, along with items of immediate bankability like checks, bank drafts, and money orders, considered a highly liquid asset.