Suppose a consumer is trying to decide how much to spend on foodfood and how much to spend on all other (non-foodfood) consumption. the economic model of consumer behavior predicts that the consumer will
a. choose the combination of foodfood and non-foodfood consumption that makes her as well off as possible from among the combinations of foodfood and non-foodfood items she can afford.
b. consume any combination of foodfood and non-foodfood consumption from among the combinations of foodfood and non-foodfood items she can afford.
c. consume an infinite amount of foodfood and non-foodfood consumption.
d. consume as much foodfood and as much non-foodfood consumption as she wants.
e. consume as much foodfood as she can afford without any non-foodfood consumption.

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

Trey morgan is an employee who is paid monthly. for the month of january of the current year, he earned a total of $4,538. the fica tax for social security is 6.2% of the first $118,500 earned each calendar year, and the fica tax rate for medicare is 1.45% of all earnings for both the employee and the employer. the amount of federal income tax withheld from his earnings was $680.70. his net pay for the month is .

During which of the following phases of the business cycle does the real gdp fall? a. trough b. expansion c. contraction d. peak