(Table) Using the Information in the Table, Assume the Consumer

question 161

Multiple Choice

(Table) Using the information in the table, assume the consumer has a weekly budget of $2.50, the price of a root beer is $0.50, and the price of a candy bar is $1. The consumer maximizes utility by purchasing
$\begin{array}{l}\hline \quad \quad \quad {\text { Root Beer }} \quad \quad \quad \quad \quad \quad \quad \quad {\text { Candy Bars }} \\\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \text { Total Utility } & \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 & 0 & 0 \\\hline 1 & 60 & 1 & 80 \\\hline 2 & 110 & 2 & 150 \\\hline 3 & 150 & 3 & 200 \\\hline 4 & 180 & 4 & 230 \\\hline 5 & 200 & 5 & 240 \\\hline 6 & 210 & 6 & 240 \\\hline\end{array}\end{array}$

• A) five root beers.
• B) three root beers and one candy bar.
• C) one root beer and two candy bars.
• D) two root beers and one candy bar.

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Definitions:

Productivity

The measure of how efficiently goods and services are produced, often evaluated as output per unit of input.

Theory X

The assumption that people dislike work, lack ambition, act irresponsibly, and prefer to be led.

Motivating

The process of stimulating someone's interest or enthusiasm for doing something.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone; the state of being accountable.