Joanna Is Deciding Between Consuming Good X and Good Y

question 54

Multiple Choice

Joanna is deciding between consuming Good X and Good Y.At her current level of consumption,her marginal utility per dollar for Good X is greater than the marginal utility per dollar for Good Y.To achieve the consumer optimum,Joanna needs to

• A) consume more of Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X.
• B) consume more of Good X until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X.
• C) consume more of both Good X and Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X.
• D) consume more of Good X or less of Good Y until the marginal utility per dollar for Good X and Good Y is equal.
• E) continue at her current level of consumption.

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Definitions:

Paid Dividend

Refers to the portion of a company's earnings that has been distributed to shareholders as dividends.

Account Payable

Liabilities of a business that are owed to creditors for goods or services purchased on credit.

Total Assets

The sum of all assets owned by a company, including both current and non-current assets.

Accounting Systems

A structured process of collecting, recording, summarizing, and reporting financial transactions for a business or organization.