Let There Be Two Goods, X and Y

question 59

Multiple Choice

Let there be two goods, X and Y.For individual A, the marginal utility of X is 2 while the marginal utility of Y is 1.If the prices of X and Y were both equal to $10, then individual A could improve his welfare even without an infusion of extra income by consuming:

• A)more X even at the expense of consuming less Y.
• B)more Y even at the expense of consuming less X.
• C)more X only if consumption of Y could be maintained at the original level.
• D)less X, but only if consumption of Y could be maintained at the original level.
• E)none of the above.

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Definitions:

Retain Employees

The strategies and practices employers use to prevent turnover and keep employees engaged and committed to the organization.

Knowledge Acquisition

The process through which individuals or systems gather, interpret, and internalize information, transforming it into knowledge.

Knowledge Exploitation

The process of utilizing existing knowledge within an organization to create value or competitive advantage.

Perception

The process of interpreting the messages of our senses to provide order and meaning to the environment.