Exhibit 6-6 Marginal Utility for Data for Clothes and Amusement

question 62

Multiple Choice

Exhibit 6-6 Marginal utility for data for clothes and amusement

Refer to Exhibit 6-6. Clothes and amusements are priced at $10 each. The marginal utility per dollar for the first unit of amusement is:

• A) 0.5.
• B) 1.5.
• C) 2.0.
• D) 5.0.

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Definitions:

Fixed Amounts

Predetermined quantities or sums that do not change over time or in response to varying conditions.

Trade by Bartering

A method of exchanging goods or services directly without using money.

Laissez-Faire

Laissez-faire is an economic philosophy advocating for minimal government intervention in the market, with transactions between private parties being free from tariffs, subsidies, and enforced monopolies.

Government Interference

Actions by the government that affect the market, often with the intention of correcting market failures or achieving a social objective.