Assume That Diminishing Marginal Utility Applies to Both Coffee and Football

question 149

Multiple Choice

Assume that diminishing marginal utility applies to both coffee and football tickets and that the consumer is spending all of her income.If a consumer purchases a combination of coffee and football tickets such that MU_Coffee/ /P_Coffee = 20 and MU_{Football tickets}/ /P_{Football tickets} = 10,to maximize utility,the consumer should buy _____ coffee and _____ football tickets.

• A)less;more
• B)more;fewer
• C)more;more
• D)less;fewer

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Definitions:

Agency Shop Agreements

Labor agreements that require employees to either join the union or pay a fee equivalent to union dues, even if they choose not to become union members.

Fair Representation

The legal duty of a union to represent all members impartially and effectively, especially in negotiations and grievance processes.

Superseniority

A privilege given to union officials that provides them higher priority over other workers in matters of layoffs and recalls, ensuring their positions are more secure.

Union Stewards

Representatives elected by union members to enforce the terms of labor contracts and address grievances.