Refer to the Data for a Utility-Maximizing Consumer Whose Income

question 41

Multiple Choice

Refer to the data for a utility-maximizing consumer whose income = $4. Assume that new product Z doesn't exist. How many units of X and Y will this consumer buy, given his or her $4 budget?

• A)1 of X and 3 of Y
• B)3 of X and 1 of Y
• C)2 of X and 2 of Y
• D)0 of X and 4 of Y

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Definitions:

Wealth

An abundance of valuable material possessions or resources; the total of all assets owned by an individual or organization minus liabilities.

Saving

The act of preserving financial resources for future use, often through mechanisms like bank accounts, investments, or pension plans.

Compensating Differential

A difference in wages that arises to offset the desirability or undesirability of a job due to its characteristics.

Alaskan Fishermen

Individuals or groups involved in the fishing industry in Alaska, often dealing with challenges such as overfishing, environmental changes, and regulatory issues.