-Suppose That You Consume Only Pizza,which Costs $4 Per Slice,and

question 272

Multiple Choice

-Suppose that you consume only pizza,which costs $4 per slice,and Diet Pepsi,which costs $2 each.The table above gives your utility from consuming these two goods.If your income is $20,which of the following consumption combinations will you choose?

• A) 5 slices of pizza and no Diet Pepsi
• B) 4 slices of pizza and 2 Diet Pepsis
• C) 3 slices of pizza and 4 Diet Pepsis
• D) 2 slice of pizza and 6 Diet Pepsis
• E) None of the above answers are correct.

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Definitions:

Marginal Cost

The price of making one more unit of a certain product.

Government Regulation

Rules or directives made and maintained by a government to regulate behavior or enforce standards in various fields.

Centrally Planned Economies

Economic systems in which the government or a central body makes all decisions about the production and distribution of goods and services.

Environmental Quality

The state of the physical, chemical, and biological conditions of the environment based on various indicators.