QUESTION #7: Leo has Php500 a week to spend on food (f) and clothing (c). The price of food is Php10and the price of clothing is Php25. What is the equation for Jane's budget constraint? A) Food + Clothing < Php500 B) Php10 x Food + Php25 x Clothing > Php500 C) Php10x Food/Php25 x Clothing = Php500 D) Php10x Food + Php25 x Clothing = Php500

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QUESTION #7: Leo has Php500 a week to spend on food (f) and clothing (c). The price of food is Php10and the price of
clothing is Php25. What is the equation for Jane's budget constraint?
A) Food + Clothing < Php500
B) Php10 x Food + Php25 x Clothing > Php500
C) Php10x Food/Php25 x Clothing = Php500
D) Php10 x Food + Php25 x Clothing = Php500
Refer to the information provided in Figure 6.1 below to answer the questions that follow.
40
Eon's monthly budget constraint
B D
с
A) A.
B) B.
C) E.
D) D.
0
20
Number of hamburgers per month
QUESTION #8: Refer to Figure 6.1. Assume Eon is on budget constraint AC. If the price of a hamburgeris Php5, Tom's
monthly income is
A) Php20.
B) Php60.
C) Php100.
D) Php300.
QUESTION #9: Refer to Figure 6.1. The slope of budget constraint AC is
A)-5.0.
B)-2.0.
C) -0.5.
D) indeterminate from this information because prices are not given.
QUESTION #10: Refer to Figure 6.1. Assume Eon's budget constraint is AC. He does not spend hisentire income at
point
A) A.
B) B.
C) D.
D) E.
QUESTION #11: Refer to Figure 6.1. Assume Eon's budget is AC. Given his current monthly income hecannot purchase
the bundle of goods at point
Transcribed Image Text:QUESTION #7: Leo has Php500 a week to spend on food (f) and clothing (c). The price of food is Php10and the price of clothing is Php25. What is the equation for Jane's budget constraint? A) Food + Clothing < Php500 B) Php10 x Food + Php25 x Clothing > Php500 C) Php10x Food/Php25 x Clothing = Php500 D) Php10 x Food + Php25 x Clothing = Php500 Refer to the information provided in Figure 6.1 below to answer the questions that follow. 40 Eon's monthly budget constraint B D с A) A. B) B. C) E. D) D. 0 20 Number of hamburgers per month QUESTION #8: Refer to Figure 6.1. Assume Eon is on budget constraint AC. If the price of a hamburgeris Php5, Tom's monthly income is A) Php20. B) Php60. C) Php100. D) Php300. QUESTION #9: Refer to Figure 6.1. The slope of budget constraint AC is A)-5.0. B)-2.0. C) -0.5. D) indeterminate from this information because prices are not given. QUESTION #10: Refer to Figure 6.1. Assume Eon's budget constraint is AC. He does not spend hisentire income at point A) A. B) B. C) D. D) E. QUESTION #11: Refer to Figure 6.1. Assume Eon's budget is AC. Given his current monthly income hecannot purchase the bundle of goods at point
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