Lecture4--BUDGETSANDOPPORTUNITYCOST

Lecture4--BUDGETSANDOPPORTUNITYCOST - We will make up a...

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Course Examination 1 Course Examination 1 Date: Monday, September 29 Place: Here (Nelson Auditorium) Time: 11:20 a.m. - 12:15 p.m. Coverage: Chapters 1- 6 Format: 25 multiple-choice questions Remember to bring a number 2 pencil to the Exam-- Make-ups allowed within one week only with medical or other valid excuse. We will make up a seating plan next week. Please choose a seat you like for the semester. .
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Budgets and Opportunity Cost How our options are affected by our incomes and the prices of things we want
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A budget shows how expenditure is limited by income Expenditure cannot exceed income unless we borrow How much we can afford depends on both our income and the prices of what we want
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Shows feasible combinations of items you can purchase Income=$100 per month Price of Discs=$5 Price of gasoline= $1 per gallon The Budget Constraint is $100= 5R+G Slope = -5/1 Slope =-Price of discs/price of gasoline
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This note was uploaded on 01/28/2011 for the course EC 205 taught by Professor Hymen during the Fall '08 term at N.C. State.

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Lecture4--BUDGETSANDOPPORTUNITYCOST - We will make up a...

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