A Child Is Given $4

question 95

Multiple Choice

A child is given $4.00 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. Which combination would give the child the maximum utility out of spending $4?

• A)6 chocolates and 2 hard candies
• B)4 chocolates and 3 hard candies
• C)2 chocolates and 4 hard candies
• D)0 chocolates and 5 hard candies

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Definitions:

Diagnose

To diagnose means to identify the nature of a problem, condition, or disease through examination of the symptoms or available data.

Meaningfulness

The perception of having a purposeful and significant impact through one's actions or work.

Performing Important

The act of carrying out tasks or roles that have significant value or impact within a particular context.

Valuable Tasks

Activities or responsibilities that have significant importance or worth, contributing positively to the objectives and success of an organization or individual.