Camille is at the candy store with her grandmother, who offers to buy her $6 worth of candy. If lollipops are $1 each, and candy bars are $2 each, what combination of candy can Camille's grandmother buy for her? Two lollipops and two candy bars One lollipop and three candy bars Three lollipops and two candy bars Six lollipops and three candy bars Assume the price of product Y (the quantity of which is on the vertical axis) is $15 and the price of product X (the quantity of which is on the horizontal axis) is $3. Also assume that money income is $60. The absolute value of the slope of the resulting budget line: is 4. is 1/5. is 20. is 5. According to economists, economic self-interest: is a reality that underlies economic behavior. is usually self-defeating. has the same meaning as selfishness. is more characteristic of men than of women. Microeconomics: is not concerned with details, but only with the overall big picture of the economy. is the basis for the "after this, therefore because of this" fallacy. is concerned with individual economic units and specific markets. describes the aggregate flows of output and income. Which of the following is associated with macroeconomics? an empirical investigation of the general price level and unemployment rates since 1990 a case study of pricing and production in the textbook industry an examination of the incomes of Harvard Business School graduates a study of the trend of pecan prices since the Second World War An increase in money income: increases the slope of the budget line. shifts the consumer's budget line to the left. shifts the consumer's budget line to the right. has no effect on the budget line. If a positive relationship exists between x and y: the vertical intercept must be positive. an increase in x will cause y to decrease. the relationship will graph as an upsloping line. a decrease in x will cause y to increase. http://ezto.mhecloud.mcgraw-hill.com/13252698755619643590.tp4?REQUEST=SHOWmedia&media=image003.png Suppose you have a money income of $10, all of which you spend on Coke and popcorn. In the above diagram, the prices of Coke and popcorn respectively are: $.40 and $.50. $1.00 and $2.00. $.50 and $1.00. $1.00 and $.50. (Consider This) The assertion by economists that "there is no free lunch": applies to goods that have prices, not to goods given away free by firms. is contradicted by the presence of free goods offered by firms. remains true even for goods given away free by firms. applies to agricultural goods, but not to manufactured goods. http://ezto.mhecloud.mcgraw-hill.com/13252698755619643590.tp4?REQUEST=SHOWmedia&media=1image005.png Refer to the above graphs. Assume that pizza is measured in slices and beer in pints. In which of the graphs is the opportunity cost of a pint of beer the lowest? graph D graph A graph C graph B The alternative combinations of two goods which a consumer can purchase with a given money income is shown by: consumer expenditure line. a budget line. a production possibilities curve. a demand curve. Suppose that Julia receives a $20 gift card for the local coffee shop, where she only buys lattes and muffins. If the price of a latte is $4 and the price of a muffin is $2, then we can conclude that Julia: can buy 5 lattes and 10 muffins with her $20 gift card. should only buy lattes. should only buy muffins. can buy 5 lattes or 10 muffins if she chooses to buy only one of the two goods.