Given Two Goods, X and Y, Their Prices, P_X and P_Y

question 60

Multiple Choice

Given two goods, X and Y, their prices, P_X and P_Y, a consumer is in equilibrium when the last dollar spent on X yields

• A)zero marginal utility for Y.
• B)the same marginal utility as if all the money were spent on Y.
• C)a smaller marginal utility than the last dollar spent on Y.
• D)the same marginal utility as the last dollar spent on Y.
• E)none of the above

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Definitions:

Capitalists

Individuals or entities that own capital goods or investments and use them to generate wealth through production, distribution, and the sale of goods and services.

Embraced Capitalism

The process of adopting capitalist economics and practices, characterized by private ownership, profit motive, and market competition.

Central Planning

An economic system where the government makes all decisions on the production and distribution of goods and services, aiming to control the economy.

Standard of Living

The degree of wealth and material comfort available to a person or community, measured by factors such as income, quality of housing, and access to services.