If John's Marginal Utility Derived from the Consumption of Another

question 184

Multiple Choice

If John's marginal utility derived from the consumption of another candy bar is 1 and the price of the candy bar is $1.50,then

• A) this is the last candy bar John will purchase since the marginal utility is less than the price.
• B) the opportunity cost of the candy bar is less than $1.50.
• C) if John purchases and consumes the candy bar his total satisfaction will go down since the marginal utility is less than the price.
• D) there is not enough information to determine if John will or will not purchase the candy bar.

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Definitions:

Commerce Clause

A provision in the U.S. Constitution giving Congress the power to regulate commerce with foreign nations, among the states, and with Native American tribes.

Interstate Commerce

Commercial transactions or movement of goods and services that cross state boundaries within the United States.

Regulatory Reach

The extent to which government agencies can enforce rules and regulations governing individuals, businesses, and other entities.

Enumerated Powers

Specific powers granted to Congress as outlined in Article 1, Section 8 of the U.S. Constitution.