Assume that an individual consumes two goods, X and Y. The total utility (assumed measurable) of each good is independent of the rate of consumption of other goods. The prices of X and Y are, respectively, $5 and $10.
Given the above, if the consumer has $110 to spend on X and Y, which combination will the consumer choose?
A. 7X and 7Y
B. 8X and 7Y
C. 6X and 8Y
D. 7X and 6Y
E. 5X and 4Y
Answer: C
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Education increases the stock of which factor of production?
A) physical capital B) human capital C) land D) entrepreneurship
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