Consider a consumer choosing between spending her money on food, F, or clothing, C. Assume that a unit of food and a unit of clothing have the same price, and that the consumer can afford a total of 20 units of either food or clothing. The benefit of food is given by B(F) = 100?F, with MB(F) = 50/?F. The benefit of clothing is given by B(C) = 25C, with MB(C) = 25. How many units of food should the consumer buy?
A. 0
B. 2
C. 4
D. 6
C. 4
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Indicate whether the statement is true or false
A regressive tax:
a. is designed to take a larger percentage of higher incomes as compared to lower incomes b. is designed in such a way that as a person's income rises, the amount of tax as a proportion of income rises. c. takes a greater proportion of the income of lower-income groups than of higher-income groups. d. is considered to be the most equitable type of tax.
When you choose the solution that has the greatest benefit for you
a. implicit favorite model b. bounded rationality model c. econological model d. none of the above
Average GDP per person is
A. A measure of the economic growth rate of a country. B. The value of the factors of production used to produce output in a country. C. Also known as GDP. D. Also known as per capita GDP.