Tori Devotes All of Her Income to the Consumption of Peanut

question 62

Multiple Choice

Tori devotes all of her income to the consumption of peanut butter and jelly.She has just discovered that at her current level of consumption the marginal utility of a jar of peanut butter is 5 and the marginal utility of a jar of jelly is 7.Which statement is TRUE?

• A)To maximize her total utility,Tori should consume more of both goods.
• B)To maximize her total utility,Tori should consume less of both goods.
• C)To maximize her total utility,Tori should consume more peanut butter and less jelly.
• D)There is not enough information provided to justify a change in Tori's level of consumption.

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Definitions:

Subsidiary Accounts

Detailed accounts linked to a general ledger account that record individual transactions related to that ledger's balance.

General Ledger Control Accounts

Accounts used to summarize the total balances of several subsidiary accounts, facilitating the reconciliation and reporting process.

Subsidiary Ledgers

Detailed ledgers that contain information supporting accounts listed in the general ledger, such as details on accounts receivable, accounts payable, etc.

Subsidiary Ledgers

Detailed records that contain information about specific accounts, which together support and reconcile with summary amounts in the general ledger.