Suppose a consumer knows that at her current bundle, MUx/Px > MUy/Py. Is this individual choosing a bundle that maximizes utility?
a. Yes, because this individual values good X more than good Y
b. Yes, because this individual values good Y more than good X.
c. No. This individual should shift consumption from good X to good Y.
d. No. This individual should shift consumption from good Y to good X.
d
You might also like to view...
The increasing attractiveness of a variety of liquid financial assets has caused the
A) velocity of M1 to rise. B) demand for M1 to rise. C) velocity of M1 to decline. D) supply of M1 to decline.
The large influx of immigrant families between 1860 and 1910 caused the total population to grow at a faster rate than the work force
Indicate whether the statement is true or false
Refer to the above figures. A tariff is placed on a foreign good. Which figure represents the situation in the domestic market for the foreign good?
A) Panel A B) Panel B C) Panel C D) Panel D
Business success is largely dependent on
A) being a first mover. B) quality products. C) dynamic management. D) a global focus. E) many different things.