Exhibit 6-5 Marginal Utility Data for Desserts -Refer to Exhibit 6-5

question 42

Multiple Choice

Exhibit 6-5 Marginal utility data for desserts $$\begin{array} { | c | c | c | c | } \hline \text { Quantity } & \text { Brownies } & \text { I ce Cream } & \text { Pie } \\\hline 1 & 20 & 18 & 16 \\2 & 18 & 17 & 13 \\3 & 15 & 14 & 9 \\4 & 12 & 11 & 7 \\5 & 10 & 8 & 5 \\\hline\end{array}$$
-Refer to Exhibit 6-5. Each dessert is priced at $1. If you had $10 to spend on desserts, which of the following combinations of goods would you buy?

• A) 5 units of brownies, 4 units of ice cream, and 1 unit of pie.
• B) 4 units of brownies, 5 units of ice cream, and 1 unit of pie.
• C) 4 units of brownies, 4 units of ice cream, and 2 units of pie.
• D) 4 units of brownies, 3 units of ice cream, and 3 units of pie.
• E) 3 units of brownies, 4 units of ice cream, and 3 units of pie.

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Definitions:

Basic Markets

Markets that are fundamental to the economy, dealing with the exchange of goods, services, labor, and financial instruments.

Central Planning

An economic system where the government or central authority makes all decisions regarding the production and distribution of goods and services.

Coordination Problem

The challenge of aligning decisions and actions among various parties to achieve a common goal.

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods or services.