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

question 113

Multiple Choice

Given two goods, X and Y, and their prices, P_X and P_Y a consumer will maximize total utility by allocating expenditures such that

• A)MU_X/P_Y = MU_Y/P_X.
• B)P_Y/MU_X = P_X/MU_Y.
• C)MU_X/P_X = MU_Y /P_Y.
• D)MU_X = P_X = MU_Y = P_Y = MU_$.
• E)MU_X = MU_Y = P_X = P_Y = MU_$.

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Definitions:

Type T Personality

Personality type characterized by thrill-seeking behaviors, tendency to take risks, and a desire for excitement.

Type A Personality

A personality type characterized by high levels of competitiveness, self-driven behavior, a sense of urgency, and an aggressive nature.

Optimistic Explanatory Style

The tendency to attribute positive events to personal, permanent causes, and negative events to external, temporary ones, expecting good outcomes.

Pessimistic Explanatory Style

A tendency to explain negative events as having personal, permanent, and pervasive causes.