Assume That the Unit Price of Good a Is $4

question 45

Multiple Choice

Assume that the unit price of good A is $4, and the unit price of good B is $5. If an individual has income of $44, which consumption bundles of (good A, good B) is on the edge of the budget constraint?

• A) (5,5)
• B) (5,4)
• C) (6,4)
• D) (6,5)

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Definitions:

Crop-Lien System

A credit system widely used in the Southern United States after the Civil War, where farmers used their crops as collateral for loans, leading to cycles of debt and poverty.

Southern Farmers

Generally refers to agricultural workers and landowners in the Southern United States, historically dependent on crops like cotton and tobacco, and deeply affected by the Civil War and subsequent economic changes.

Hatch Act

A U.S. federal law enacted in 1939 that restricts the political activities of government employees in order to ensure the neutrality of the public service.

Agricultural Science

The study of the sciences related to the production of crops and livestock, and management of soil and water resources.