Table 5-1
Number of milkshakes consumed123Total utility from milkshakes (in $)$23$28$31Number of sandwiches consumed123Total utility from sandwiches (in $)$40$43$45?
?
Table 5-1 gives information on George’s total utility from consuming milkshakes and sandwiches. If George’s income this week is $15, milkshakes are $3 each, and sandwiches $2, he will maximize his utility if he buys
A. three milkshakes and two sandwiches.
B. three milkshakes and three sandwiches.
C. no milkshakes and as many sandwiches as possible.
D. two milkshakes and three sandwiches.
Answer: B
You might also like to view...
The welfare effects of a quota depend, to considerable extent, upon
A) who has the quota license. B) the size of the quota. C) elasticities of domestic demand and supply. D) all of the above.
Proponents of passive policy making believe that
A) the existence of time lags makes active policy ineffective or even procyclical. B) time lags do not exist so the economy will adjust too rapidly with active policy. C) government should not follow any particular policy. D) fiscal policy is always better than monetary policy in stabilizing the economy.
What do you feel would be the effect of a mandate that requires all people to purchase health insurance?
What will be an ideal response?
When a bank's excess reserves are zero:
a. its required reserves exceed its legal reserves. b. its liabilities exceed its assets. c. its liabilities must be lower than its assets. d. its required reserves equal its legal reserves. e. it cannot meet its reserve requirement.