Exhibit 6-6 Marginal Utility for Data for Clothes and Amusement

question 148

Multiple Choice

Exhibit 6-6 Marginal utility for data for clothes and amusement $$\begin{array} { | c | c | c | } \hline \text { Quantity } & \text { Clothes } & \text { Amusement } \\\hline 1 & 15 & 20 \\2 & 13 & 18 \\3 & 10 & 15 \\4 & 8 & 12 \\5 & 6 & 10 \\\hline\end{array}$$
-Refer to Exhibit 6-6. Clothes and amusements are priced at $10 each. If you had a budget of $50, which of the following combinations of goods would you buy?

• A) 4 units of clothes and 1 unit of amusement.
• B) 3 units of clothes and 2 units of amusement.
• C) 2 units of clothes and 3 units of amusement.
• D) 1 unit of clothes and 4 units of amusement.
• E) 5 units of clothes and 5 units of amusement.

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Definitions:

Working Memory

The part of the information-processing system where active thinking takes place, and information from the sensory register may be combined with memory of past experiences.

Long-term Memory

The phase of memory capable of storing an unlimited amount of information indefinitely, ranging from a few minutes ago to as far back as one can remember.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions—to oneself and others and to understand that others have beliefs and desires different from one's own.

Beliefs and Desires

The mental attitudes and inclinations that influence a person's motivations and actions.