A Child Is Given $4 of Pocket Money to Be

question 358

Multiple Choice

A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table. If the child buys either chocolates or hard candies one piece at a time, what will be his first two purchases?

• A)a hard candy, followed by another hard candy
• B)a hard candy, followed by a chocolate
• C)a chocolate, followed by a hard candy
• D)a chocolate, followed by another chocolate

---

Definitions:

Agricultural Industries

Sectors of the economy involved in the production, processing, and distribution of farm products.

Communal Landholdings

Refers to land that is owned collectively by a community, rather than by individuals or corporations, often managed and used according to community-agreed practices and rules.

The Grange

Also known as the Patrons of Husbandry, a fraternal organization founded in 1867 to advance the social and economic needs of farmers in the United States.

Farm Output

The total quantity of agricultural products produced by farms, including crops and livestock, within a certain period.