If, for Adam, the Marginal Utility of Ties Is Greater

question 151

Multiple Choice

If, for Adam, the marginal utility of ties is greater than the marginal utility of shirts, to maximize utility, Adam should:

• A) buy more ties and fewer shirts.
• B) buy more shirts and fewer ties.
• C) buy the same amount of each.
• D) determine the price of ties and the price of shirts before he decides how many of each to buy.

---

Definitions:

Flexibility

The ability to adapt to new, different, or changing requirements and situations.

Prefrontal Cortex

The front part of the frontal lobe in the brain, implicated in a variety of complex behaviors including planning, decision making, and moderating social conduct.

Cerebral Cortex

The outer layer of the brain's cerebrum, involved in many complex brain functions including memory, attention, perceptual awareness, thought, language, and consciousness.

One-Third

The fraction that represents a division of something into three equal parts, specifically one part out of these three.