The Video Star Company Makes Two Different Models of DVD

question 96

Multiple Choice

The Video Star Company makes two different models of DVD players, which are assembled on two different assembly lines. Line 1 can assemble 32 units of the Star model and 44 units of the Prostar model per hour, and Line 2 can assemble 150 units of the Star model and 40 units of the Prostar model per hour. The company needs to produce at least 260 units of the Star model and 225 units of the Prostar model to fill an order. Let x represent the number of assembly hours for Line 1 and y represent the number of assembly hours for Line 2. Write the inequalities that describe the production constraints on the number of each type of DVD player needed to fill the order. ​

Understand the concept and graphical representation of indifference curves.

Interpret the effects of changes in income and prices on a consumer's budget line and choices.

Identify the optimal combinations of goods a consumer can afford given their budget constraints.

Distinguish between different shifts in the consumer's budget line and understand the underlying reasons.

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Definitions:

Fiscal Policy

The use of government purchases, transfer payments, taxes, and borrowing to influence economy-wide variables such as inflation, employment, and economic growth.

Monetary Policy

Regulation of the money supply to influence economy-wide variables such as inflation, employment, and economic growth.

Taxing

Is the act of imposing charges on individuals or corporations by government entities to raise revenue for public expenditures.

Spending

The act of using money to purchase goods or services, a fundamental economic activity influencing economic growth and inflation.