Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gourds (G) cost $2 each, and corn husks (C) cost $4 each. Prof. Cooper is buying these goods for some seasonal decorating.At her current consumption

Gourds (G) cost $2 each, and corn husks (C) cost $4 each. Prof. Cooper is buying these goods for some seasonal decorating.At her current consumption bundle, her marginal rate of substitution of corn husks for gourds (MRSCG) is 2. Assuming her indifference curves have a typical curved shape, how should she adjust her consumption bundle to maximize utility? (Choose 1)

A. Buy more gourds and fewer corn husks.

B. Go minimalist: buy fewer gourds and fewer corn husks.

C. Buy more corn husks and fewer gourds.

D. No need to adjust. She is already maximizing her utility at the current bundle.

-------------------------------------------------------------------------------------------------------------------------------------

Suppose Ronaldo consumes apple juice containers (with quantity measured on the x-axis and denoted by A) and banana chip packages (with quantity measured on the y-axis and denoted by B). Ronaldo currently consumes 5 apple juice containers and 5 banana chip packages per week. If his indifference curves have the typical curved shape andthe price of apple juice increases, which of the following will happen as a result? (Choose 1)

A. Ronaldo's budget constraint will get steeper.

B. Ronaldo's indifference curve at the point (5,5) will get steeper.

C. Ronaldo will consume more apple juice.

D. Ronaldo's level of utility will increase.

-------------------------------------------------------------------------------------------------------------------------------------

Ally and Beth are hungry. Suppose Ally has one apple and gives half of it to Beth, who has none. According to Jonathan Leightner's critique in "Utility versus Self-Sacrificing Love," (Choose 1)

A. Saying that this choice "maximizes Ally's utility" is the wrong way of thinking about such a sacrificial choice.

B. This sacrificial choice reveals that Ally prefers a situation where she and Beth each have half an apple to a situation where she has one apple and Beth has zero.

C. This sacrificial choice must be maximizing Ally's utility.

D. We can see what makes Ally "happiest" by looking at what Ally chose to do.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Legal Environment

Authors: Jeffrey F Beatty, Susan S Samuelson

3rd Edition

0324537115, 9780324537116

More Books

Students also viewed these Economics questions