John is going to spend all of his income. For the last unit of Good X consumed John gets 20 utils and for the last unit of Good Y consumed he gets 10 utils. The price of Good X is $1. The price of Good Y is $10. If John wants to maximize his utility he
should
A) continue to purchase the same amount of Good X and Good Y.
B) increase the consumption of Good X and decrease the consumption of Good Y.
C) decrease the consumption of Good X and increase the consumption of Good Y.
D) decrease the consumption of Good X and decrease the consumption of Good Y.
Answer: B
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The table above gives some of the balance of payments accounts of the United States in 2017
a. What is the current account balance? b. What is the capital and financial account balance? c. What is the official settlements account balance?
Keynes's liquidity preference theory indicates that the demand for money is
A) constant. B) positively related to interest rates. C) negatively related to interest rates. D) negatively related to bond values.
The time it takes to collect and process data is the biggest source of which lag?
A) implementation lag B) recognition lag C) government lag D) impact lag
When faced with negative supply shocks, policymakers:
A. will always focus on stabilizing output. B. cannot stabilize output so they tend to focus on inflation. C. will stabilize both inflation and output. D. face a trade-off because they cannot simultaneously stabilize both output and inflation.