If a Consumer Must Spend Her Entire Income on Some

question 67

Multiple Choice

If a consumer must spend her entire income on some combination of two commodities and chooses to spend it all on just one of the commodities then:

• A) the other commodity is an economic bad.
• B) the other commodity must have zero marginal utility.
• C) the other commodity generates less utility per dollar spent on the good.
• D) the two commodities must be perfect substitutes.

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Definitions:

Suez Canal

A man-made waterway connecting the Mediterranean Sea to the Red Sea, allowing for direct maritime transport between Europe and Asia without navigating around Africa.

Eisenhower Administration

The period of American history from 1953 to 1961, when Dwight D. Eisenhower served as the President of the United States, marked by a focus on moderate policies and the Cold War's early years.

Geneva Accords

Agreements reached at the Geneva Conference in 1954, which temporarily divided Vietnam into North and South zones at the 17th parallel and called for national elections to reunify the country.

Reunified

Brought back together into a single entity after having been divided or separated.