A Consumer Has Two Basic Choices: Rent a DVD Movie

question 36

Multiple Choice

A consumer has two basic choices: rent a DVD movie for $4.00 and spend 2 hours watching it, or spend $13 for a miniature golf game that takes 1 hour. If the marginal utilities of the movie and the miniature golf game are equal, and the consumer values time at $12 an hour, the rational consumer will most likely

• A) rent the movie instead of playing miniature golf.
• B) play miniature golf instead of renting the movie.
• C) be indifferent between the movie and the miniature golf game.
• D) not have enough basis for making a utility-maximizing decision.

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Definitions:

Anorexia

A psychological and potentially life-threatening eating disorder characterized by self-imposed starvation and excessive weight loss.

Ascites

The accumulation of fluid in the peritoneal cavity, causing abdominal swelling.

Serous Fluid

A clear, pale yellow fluid that fills the space between the membranes lining the body cavities and surrounding internal organs.

Peritoneal Cavity

The potential space within the abdomen that contains the intestines, liver, and other abdominal organs, enclosed by the peritoneum.