63) As used in economics, the notion of scarce resources means that:
A) mineral deposits are only available in finite amounts.
B) resources are not so plentiful that all individuals' material wants can be fulfilled.
C) some resources are free while others have price tags on them.
D) the quantities available of some resources exceed the demand for them.
64) The budget line shows:
A) the amount of product A which a consumer is willing to give up to obtain one more unit of product B.
B) all possible combinations of two goods which can be purchased, given money income and the prices of the goods.
C) all equilibrium points on an indifference map.
D) all possible combinations of two goods which yield the same level of utility to the consumer.
65) The price ratio of the two products is the:
A) marginal rate of substitution.
B) slope of the budget line.
C) point of tangency for equilibrium.
D) elasticity of demand for the two products.
66) Refer to the budget line shown in the diagram below. If the consumer's money income is $20, the:
A) prices of C and D cannot be determined.
B) price of C is $2 and the price of D is $4.
C) consumer can obtain a combination of 5 units of both C and D.
D) price of C is $4 and the price of D is $2.
67) Refer to the diagram below, suppose you have a money income of $10 all of which you spend on Coke and boxes of popcorn. The prices of Coke and popcorn respectively are:
A) $.50 and $1.00.
B) $1.00 and $.50.
C) $1.00 and $2.00.
D) $.40 and $.50.
68) In moving along a given budget line:
A) the prices of both products and money income are assumed to be constant.
B) each point on the line will be equally satisfactory to consumers.
C) money income varies, but the prices of the two goods are constant.
D) the prices of both products are assumed to vary, but money income is constant.
69) In drawing a budget line it is assumed that:
A) consumer preferences are fixed.
B) the prices of the two products are variable.
C) money income is fixed.
D) consumer willingness to substitute between the two products is fixed.