Marv Pilson has $50 worth of groceries in a shopping cart at his local Shop 'n Save. Assume that the marginal utility per dollar of the liter bottles of soft drink in Marv's cart equals 50
The marginal utility per dollar of the boxes of cereal in Marv's cart equals 20. Marv has only $50 to spend, but has not yet paid for his groceries. How can Marv increase his total utility without spending more than $50?
A) Marv should buy fewer boxes of cereal and fewer bottles of soft drink. He can then spend more on other items.
B) Marv should substitute his favorite soft drink or the cereal in his cart for generic brands that have lower prices.
C) Marv should buy more boxes of cereal and fewer bottles of soft drink.
D) Marv should buy fewer boxes of cereal and more bottles of soft drink.
D
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Short-run equilibrium output is where the level of output:
A. equals aggregate expenditure. B. equals real GDP per capita. C. equals potential output. D. maximizes firm profits.
According to the ________ Phillips curve, the unemployment rate and the inflation rate are negatively related
A) long-run and short-run B) rational expectations C) short-run D) long-run
Acme Steel Co produces 1000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal, which is needed to produce the steel. Acme pays $2,000 in taxes. Acme's contribution to GDP is
A) $15,000. B) $20,000. C) $30,000. D) $45,000.
The Bretton Woods system fixed all exchange rates in terms of the U.S. dollar
a. True b. False