Assume That an Individual Consumes Only Hotdogs and Colas and That

question 37

Multiple Choice

Assume that an individual consumes only hotdogs and colas and that the last hotdog consumed yields 15 utils and the last cola 10 utils. If the price of a hotdog is $1 and the price of a cola is $.50, we can conclude that the:

• A) consumer should consume more hotdogs and less cola.
• B) price of hotdogs is too high.
• C) consumer should consume fewer hotdogs and more cola.
• D) consumer is in equilibrium.

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Definitions:

Unemployed

The status of a person who is capable of working, is seeking work, but is unable to find employment.

Unemployment Insurance

A government-provided insurance that offers financial assistance to unemployed workers who have lost their jobs through no fault of their own.

Job Search

The process of looking for employment, involving the exploration of available positions and the submission of applications.

Structural Unemployment

A form of unemployment caused by fundamental changes in the economy that result in a significant mismatch between the skills workers offer and the skills demanded by employers.