Use the following information to answer the question below. Cloe is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents each and hard candies cost 80 cents each. The marginal utilities derived from the consumption of each product are as shown in the following table.Number of Items Marginal Utility of Chocolates Marginal Utility of Hard Candies 1 60 150 2 50 140 3 40 120 4 30 100 5 20 80 6 10 70 7 5 50 8 0 20 Which combination would maximize Cloe's total utility given her $4 budget?
A. 0 chocolates and 5 hard candies
B. 2 chocolates and 4 hard candies
C. 4 chocolates and 3 hard candies
D. 6 chocolates and 2 hard candies
Answer: B
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Which of the following would be most appropriate if the Federal Reserve wanted to increase the money supply in order to stimulate the economy?
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The United States is an example of a ______________ economy.
Fill in the blank(s) with the appropriate word(s).