If Arnold Thinks His Last Dollar Spent Golfing Yields Less

question 111

Multiple Choice

If Arnold thinks his last dollar spent golfing yields less satisfaction than the last dollar spent on movies, and Arnold is a utility-maximizing consumer, he should

• A)golf more so that the total satisfaction from this activity will increase
• B)spend less on movies so that the marginal satisfaction from expenditures in this area will increase
• C)golf less and spend more on movies
• D)eliminate golfing from his schedule
• E)golf more since it costs less

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Definitions:

Unethical

Not conforming to approved standards of social or professional behavior; acting against moral principles.

Subjective Probabilities

Are personal judgments or beliefs about the likelihood of certain outcomes, often based on individual experience or intuition rather than objective data.

Mathematically

Pertaining to the use, study, or application of mathematics.

Historical Data

Recorded information from past events and activities, used as a reference for analysis, decision making, and forecasting future trends.