Refer to the above table. Suppose the price of a hamburger is $2, the price of a movie is $5, and the income of the consumer is $29. What will the consumer's total utility equal at an optimum?
A. 1118
B. 70
C. 1060
D. 1025
Answer: C
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Which of the following would be most likely to improve the standard of living of a less-developed country?
a. development of strong labor unions b. more foreign investment, attracted by the expectation of economic and political stability c. adoption of trade barriers (higher tariffs and quotas) d. widespread use of price controls to allocate goods and resources
The income effect is the
A) increase in the interest rate caused by an increase in Real GDP.
B) increase in the interest rate due to a higher expected inflation rate.
C) decrease in the interest rate due to an increase in the supply of loanable funds.
D) change in national income brought about by a change in interest rates.
E) rate of change in national income brought about by a change in the supply of money.
Why does the government work to eliminate artificial barriers to entry?
What will be an ideal response?
From the mainstream perspective, instability in the economy is due to:
A. Price flexibility, and shocks to either aggregate demand or aggregate supply B. Price stickiness, and shocks to either aggregate demand or aggregate supply C. Price flexibility, and government policies and regulation D. Price stickiness, and government policies and regulation