Refer to the data. If the consumer has money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing:
Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K.
A. 2 units of J and 7 units of K.
B. 5 units of J and 5 units of K.
C. 4 units of J and 5 units of K.
D. 6 units of J and 3 units of K.
C. 4 units of J and 5 units of K.
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Which of the following is an example of a good that is excludable and nonrivalrous?
a. A fishery. b. Cable television. c. Over the air television broadcasts. d. Disney World.
Classical growth theory argues that when real GDP per person rises above the subsistence level
A) technological change slows down, stagnating the economy. B) population growth increases, driving real GDP per person back to subsistence level. C) people don't want to work as much, decreasing labor supply. D) the economy enjoys a period of permanent growth.
In the federal funds market, _____
a. banks make loans to the Fed b. banks make short-term loans to other banks c. banks make long-term loans to other banks d. the Fed makes short-term loans to private borrowers e. the Fed makes long-term loans to commercial banks
Income elasticity of demand for a good has been calculated as - 4.0, therefore the good is:
(a) A substitute good. (b) A necessity. (c) A complementary good. (d) An inferior good.