Billie Spends All of Her Income on Soccer Balls and Jeans

question 109

Multiple Choice

Billie spends all of her income on soccer balls and jeans, and the price of a pair of jeans is three times the price of soccer balls. In order to maximize total utility, Billie should

• A)buy three times as many soccer balls as pairs of jeans.
• B)buy three times as many pairs of jeans as soccer balls.
• C)buy both items until the marginal utility of soccer balls is three times the marginal utility of a pair of jeans.
• D)buy both items until the marginal utility of a pair of jeans is three times the marginal utility of soccer balls.

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Definitions:

2008

A reference to the year, notable for the global financial crisis triggered by the collapse of the housing bubble in the United States.

Public Assistance

Government programs designed to provide financial aid, support, and services to individuals and families in need.

Medicare

Medicare is a federal health insurance program in the United States primarily for people aged 65 and older, but also available to certain younger people with disabilities and individuals with End-Stage Renal Disease.

Medicaid

A social healthcare program for individuals and families with low income and resources, primarily funded by the federal government and managed by the states in the U.S.