In Question #15 Above, If the U

question 8

Multiple Choice

In Question #15 above, if the U.S. wage rate is $40 per day and the exchange rate is £1 = $1, what is the upper limit to the wage rate in the United Kingdom that is consistent with Two-way trade between the countries?

• A) £26? per day
• B) £30 per day
• C) £32 per day
• D) £40 per day

---

Definitions:

Marginal Utility

Marginal utility refers to the additional satisfaction or benefit one receives from consuming an additional unit of a good or service.

Pepsi

A carbonated soft drink manufactured by PepsiCo, serving as one of the most recognized brands globally in the beverage industry.

Utility Function

A mathematical representation that ranks individuals' preferences for sets of consumption bundles.

Budget Equation

A financial formula that balances income and expenditures, often used in personal finance or government budgeting.