CHAPTER 2 Budget Constraint Topic: Budget Constraint Difficulty: 1 y Correct Responses: 100 Discrimination Index Correct Answer: C 2.28 Edmund must pay $6 each for punk rock video casettes, V. If Ed mund is paid $24 per sack for accepting garbage, G, and if his rel atives send him an allow ance of $192, then his budget line escribed by the equation (a)6V=24G (b)6V+24G=192 (c)6V-24G=192 (d)6V=192-G e) None of the above udget Constraint Difficulty: 1 Res Discriminat ion Index: 0 2.29 Edmund must pay $6 each for punk rock video casettes, V. If Edmund is paid $24 per sack for accepting garbage, G, and if his rel atives send him an allow ance of $168, t hen his budget line is d by the equat (a)6V=24G 1)6V=168-G (e) None of the above Topic: Budget Constraint Difficulty: 0 Correct Responses: 0 Discriminat ion Index: 0 30 If you have an income of $40 to spend, if commodity 1 costs 4 per unit, and commodity 2 (a)x1/4+x2/20=4 e)24(x1+x2)=4CHAPTER 2 Budget Constraint 14 Topic: Budget Constraint Diculty: 1 % Correct Responses: 100 Discrimination Index: 0 Correct Answer: C 2.28 Edmund must pay $6 each for punk rock video casettes, V . If Edmund is paid $24 per sack for accepting garbage, G; and if his relatives send him an allowance of $192, then his budget line is described by the equation: (a) 6V = 24G. (b) 6V + 24G = 192. (c) 6V ￾ 24G = 192. (d) 6V = 192 ￾ G. (e) None of the above. Topic: Budget Constraint Diculty: 1 % Correct Responses: 100 Discrimination Index: 0 Correct Answer: C 2.29 Edmund must pay $6 each for punk rock video casettes, V . If Edmund is paid $24 per sack for accepting garbage, G; and if his relatives send him an allowance of $168, then his budget line is described by the equation: (a) 6V = 24G. (b) 6V + 24G = 168. (c) 6V ￾ 24G = 168. (d) 6V = 168 ￾ G. (e) None of the above. Topic: Budget Constraint Diculty: 0 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: C 2.30 If you have an income of $40 to spend, if commodity 1 costs $4 per unit, and commodity 2 costs $20 per unit, then the equation for your budget line can be written as: (a) x1=4 + x2=20 = 40. (b) (x1 + x2)=(24) = 40. (c) x1 + 5x2 = 10. (d) 5x1 + 21x2 = 41. (e) 24(x1 + x2) = 40