(Table) in the Table, Assume That a Consumer Has a Budget

question 268

Multiple Choice

(Table) In the table, assume that a consumer has a budget of $12, water costs $2 per bottle, and chips cost $3 per bag. Utility will be maximized by buying
$\begin{array}{l}\hline \quad \quad \quad {\text { Bottled Water }} \quad \quad \quad \quad \quad \quad \quad {\text { Bags of Chips }} \\\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \text { Total Utility } & \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 & 0 & 0 \\\hline 1 & 40 & 1 & 60 \\\hline 2 & 70 & 2 & 90 \\\hline 3 & 90 & 3 & 105 \\\hline 4 & 100 & 4 & 114 \\\hline 5 & 106 & 5 & 120 \\\hline\end{array}\end{array}$

• A) no water and four bags of chips.
• B) three bottles of water and two bags of chips.
• C) two bottles of water and three bags of chips.
• D) three bottles of water and three bags of chips.

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Definitions:

Compa-Ratio

A metric used in human resource management to compare the salary of an individual to the midpoint of a salary range for their position or job classification.

Pay Grade

A step or level within an organization's pay structure that determines the range of pay rates for employees based on the complexity, responsibility, and skills needed for their jobs.

Midpoint

In human resources, it often refers to the middle value in a salary range for a particular position, serving as a benchmark for compensation levels.

Compensation Management

The systematic approach to managing and determining employees' wages, salaries, benefits, and incentives.