Refer to the information provided in Figure 6.15 below to answer the question that follows. Figure 6.15Refer to Figure 6.15. The highest indifference curve depicted is the one on which point D lies. Why is Jason not maximizing his utility at point D?

A. He cannot afford point D.
B. His marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog.
C. His marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog.
D. He is maximizing his utility at point C.


Answer: A

Economics

You might also like to view...

In the absence of a Ricardo-Barro effect, a government budget deficit ________ the demand for loanable funds, ________ the real interest rate, and ________ investment

A) increases; increases; crowds out B) increases; decreases; increases C) decreases; increases; increases D) decreases; increases; crowds out

Economics

Which of the following correctly describes the external benefit resulting from an individual's purchase of a winter flu shot?

a. The flu shot is cheaper than the cost of treatment when you get the flu. b. The income of doctors increases when you get the flu shot. c. The flu shot reduces the likelihood others will catch the flu. d. The flu shot reduces the likelihood you will miss work as the result of sickness; therefore, you will earn more income.

Economics

Considering only its direct effect on income, expansionary fiscal policy tends to:

A. decrease a trade deficit. B. increase a trade deficit. C. increase a trade surplus. D. be ambiguous with respect to the trade deficit.

Economics

A perfectly competitive firm cannot earn an economic profit in the long run because

A. there are no barriers to entry into the industry. B. it faces a perfectly inelastic demand curve. C. it is a "price-maker." D. all firms in the industry earn accounting profits.

Economics