Assume That a Consumer Purchases a Combination of Products Y

question 153

Multiple Choice

Assume that a consumer purchases a combination of products Y and Z and that the MUy/Py = 25 and MUz/Pz = 20.To maximize utility, without spending more money, the consumer should

• A)purchase less of Y and more of Z.
• B)purchase more of Y and less of Z.
• C)purchase more of both Y and Z.
• D)make no change in the quantities Y and Z.

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Definitions:

Current Account

An account of a country’s exports and imports of goods, services, and income.

Balance of Trade

The difference between the monetary value of a nation's exports and imports over a certain period. A positive balance means more goods were exported than imported, and vice versa.

World Trade Organization

An international body that deals with the rules of trade between nations, aiming to ensure trade flows as smoothly and predictably as possible.

Multilateral Forum

A platform where three or more countries engage in dialogue and collaboration on issues of common interest.