The table above gives the utility from pens and pencils. If the consumer has an income of $4, pens cost $1, and pencils cost $.20, what is the consumer's total utility when he or she maximizes utility?
A) 374
B) 225
C) 405
D) 365
A
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By raising the discount rate, the Federal Reserve ________ banks from borrowing more reserves
A) short-changes B) prohibits C) discourages D) encourages
C/D is the currency drain ratio and R/D is the desired reserve ratio. The money multiplier equals
A) . B) . C) . D) . E) .
In the closed economy IS-LM model, an increase in government spending crowds-out
a. prices. b. the money supply. c. consumption. d. investment. e. both c and d.
In an increasing-cost industry, expansion of output
A) causes input prices to rise as demand for them grows. B) leaves input prices constant as input demand grows. C) causes economies of scale to occur. D) occurs under conditions of increasing returns to scale. E) occurs without diminishing marginal product.