Table 7-3 -Refer to Table 7-3

question 30

Multiple Choice

Table 7-3
$$\begin{array} { | c | c | c | } \hline & \text { Ice Cream Cones } & \text { Lime Fizz Soda } \\\hline \text { Quantity } & \boldsymbol { M U } & \boldsymbol { M U } \\\hline 1 & 30 & 40 \\\hline 2 & 25 & 35 \\\hline 3 & 20 & 26 \\\hline 4 & 15 & 18 \\\hline 5 & 10 & 15 \\\hline 6 & 5 & 7 \\\hline\end{array}$$
-Refer to Table 7-3.The table above shows Lee's marginal utility from consuming ice cream cones and cans of Lime Fizz Soda.Select the phrase that completes the following statement."We can determine the number of ice cream cones and cans of Lime Fizz Soda Lee should consume to maximize his utility

• A)if we know what Lee's income is."
• B)if we know what Lee's income is and the price of an ice cream cone and the price of a can Lime Fizz Soda."
• C)by adding up the marginal utilities for ice cream cones and Lime Fizz Soda."
• D)if we know the values of the marginal utility per dollar for ice cream cones and Lime Fizz Soda."

Understand the dynamics of the consumption function, including the marginal propensity to consume (MPC) and save (MPS).

Recognize the role of autonomous spending in shifting the aggregate demand and expenditure curves.

Discern the implications of changes in the price level for exports, imports, and net exports.

Understand the concept of equilibrium in the context of aggregate expenditure and real GDP.

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Definitions:

Receipts

Documentation of a transaction that provides proof of payment.

Disbursements

The act of paying out money, especially from a fund or account, for a specific purpose.

Single-entry Accounting

A simplified accounting method where transactions are recorded with a single entry, typically used by small businesses for tracking income and expenses.

Common-size Statements

Financial statements that present all items as percentages of a common base figure, facilitating comparison between periods or among companies.