The Following Graph Shows the Total Utility Obtained from Rice

question 111

Multiple Choice

The following graph shows the total utility obtained from rice crackers and beer by Carla.

-Refer to the above graph to answer this question.If the price of rice crackers are $2,beer is $3,and Carla has a budget of $14,how much of each will she purchase if she wishes to maximize her total utility?

• A)1 cracker and 4 beers.
• B)2 crackers and 3 beers.
• C)3 crackers and 3 beers.
• D)4 crackers and 2 beers.
• E)5 crackers and 1 beer.

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Definitions:

Loanable Funds

The funds available in the financial markets for borrowing, which come from people's savings and the money printed by the government.

Government Expenditures

The total amount spent by the government in a given period, including spending on goods and services, social benefits, and public works.

Taxes On Interest Income

Taxes applied to income gained through interest from savings or investments.

Interest Rate

The amount charged by lenders to borrowers for the use of assets, expressed as a percentage of the principal, typically on an annual basis.