A Consumer Maximizes His Utility by Purchasing 2 Units of Good

question 99

Multiple Choice

A consumer maximizes his utility by purchasing 2 units of good X at $5 per unit and 3 units of good Y at $7 per unit.What is the ratio of the marginal utility from X to the marginal utility from Y?

• A)5/7
• B)7/5
• C)2/3
• D)3/2
• E)10/21

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Definitions:

Expropriate

The act of a government taking private property for public use, usually with compensation to the owner.

Fee Simple Absolute

A type of freehold ownership where the owner has the maximum possible rights over the property, permitting them to use it, sell it, or bequeath it under the law.

Real Property

Land and anything permanently attached to the land, such as buildings, which can be contrasted with personal property.

Personal Property

Assets or belongings that are not permanently attached to, or part of, real estate.