Assume you are spending your full budget and purchasing such amounts of X and Y that the marginal utility from the last units consumed is 40 and 20 utils respectively. Assume (a) the prices of X and Y are $8 and $4 respectively; (b) it takes 3 hours to
consume a unit of X and 1 hour to consume a unit of Y; and (c) your time is worth $2 per hour. You:
A. should substitute X for Y until the marginal utility per hour is the same for both products.
B. are consuming X and Y in the optimal amounts.
C. should consume less of Y and more of X.
D. should consume less of X and more of Y.
Answer: D
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a. True b. False Indicate whether the statement is true or false
Ceteris paribus means "Let the buyer beware."
Answer the following statement true (T) or false (F)
Are these applicants likely to be? cyclically, frictionally, or structurally? unemployed, and what would be the reason that most of them are? unemployed? Briefly explain.
What will be an ideal response?
Consumer sovereignty
A. is dependent on profits. B. is the idea that consumers determine what is produced in the economy through their demands. C. is the idea that consumers can buy whatever they want to. D. is only possible in a monarchy.