Bongiwe Spends All of Her Income on Warm-Up Suits and Running

question 38

Multiple Choice

Bongiwe spends all of her income on warm-up suits and running shoes, and the price of a warm-up suit is four times as large as the price of a pair of shoes. Then, in order to maximise total utility, Bongiwe should

• A) buy four times as many warm-up suits as pairs of running shoes.
• B) buy four times as many pairs of running shoes as warm-up suits.
• C) divide her income equally between warm-up suits and running shoes.
• D) buy both items until the marginal satisfaction of a warm-up suit is four times the marginal satisfaction of a pair of running shoes.

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Definitions:

Postmodern Economy

An economic system characterized by a shift from industrial production to services, information, and knowledge managing.

Knowledge-Workers

Employees whose main capital is knowledge, typically performing tasks that require cognitive skills, such as developing new ideas, analyzing information, and solving complex problems.

Self-Organizing

A process where a system spontaneously organizes itself without being guided or managed by an external authority, often leading to new, emergent structures or behaviors.

Kaizen

A Japanese business philosophy of continuous improvement of working practices and personal efficiency.