Josephine Buys 3 Quarts of Milk and 2 Pounds of Butter

question 44

True/False

Josephine buys 3 quarts of milk and 2 pounds of butter when milk sells for $2 a quart and butter sells for $1 a pound.Wilma buys 2 quarts of milk and 3 pounds of butter at the same prices.Josephine's marginal rate of substitution between milk and butter is greater than Wilma's.

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Definitions:

State Action

Activities or conduct carried out by government or governmental officials, particularly with respect to whether an action can be challenged as unconstitutional.

Public Function

An activity or service that is traditionally the responsibility of the government and is performed or carried out for the benefit of the public.

State Regulation

The oversight and control by a state government over certain activities, industries, or professions within its jurisdiction.

Federal Action

Any legal actions initiated or enforced by the federal government or its agencies.