The Price of a Hamburger Is $1, the Price of a Movie

question 371

Multiple Choice

The price of a hamburger is $1, the price of a movie is $5, and the consumer has $13. A consumer has purchased 3 hamburgers and two movies, receiving 10 units of utility for the last hamburger and 10 units of utility for the last movie. The set of goods

• A) is an optimum since the entire income is spent and the marginal utility is the same for the last unit of each good.
• B) is an optimum because the consumer has maximized her utility given the limited income she had.
• C) is not an optimum because the marginal utility per dollar spent is greater for the hamburger than for the movie.
• D) is not an optimum because the marginal utility for the second hamburger was less than the marginal utility for the first hamburger.

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Definitions:

Bobo Doll Experiments

A series of studies conducted by Albert Bandura that demonstrated how children mimic aggressive behavior observed in adults.

Experimental Group

A group in an experiment that receives the variable being tested, which is compared to a control group that does not receive the test variable.

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment, used for comparison purposes.

Violent Behavior

Involves actions with the intent to cause physical harm or damage to others or property, often associated with aggression and anger.