Suppose That for Jason the Marginal Utility of $50-Per-Serving Caviar

question 146

Multiple Choice

Suppose that for Jason the marginal utility of $50-per-serving caviar is 100 and the marginal utility of $1-per-serving popcorn is 10.For his snack, Jason should buy

• A)the caviar if he has the $50; otherwise the popcorn
• B)the caviar if he has the $50; otherwise nothing
• C)the popcorn, whether he has the $50 or not
• D)one serving each of the caviar and popcorn, if he has $51
• E)five servings of popcorn for each serving of caviar

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Definitions:

Annual Output

The aggregate sum of products and services generated by an economy or company within a single year.

Standard of Living

A measure of the economic welfare and the quality of life of a population, based on income, employment, class disparity, poverty rate, and housing affordability.

Productivity

The efficiency of production measured by the output per unit of input.

Standard of Living

The measure of fiscal prosperity, convenience, material assets, and critical needs granted to a select socioeconomic layer or specific geographic territory.