The Table Below Shows the Quantities of Toffee Bars and Bags

question 82

Multiple Choice

The table below shows the quantities of toffee bars and bags of cashews that a consumer could consume over a 1-week period.
Toffee (bars) Cashews (bags)
TABLE 6-1
-Refer to Table 6-1.If the prices of toffee bars and bags of cashews are both $1 and this consumer has $7 per week to spend on these two snacks,how many of each will he/she purchase to maximize utility?

• A)2 toffee bars and 5 bags of cashews
• B)3 toffee bars and 4 bags of cashews
• C)4 toffee bars and 3 bags of cashews
• D)5 toffee bars and 2 bags of cashews
• E)6 toffee bars and 1 bag of cashews

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Definitions:

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to finance federal government spending, considered very low risk.

Full-Employment Output

is the level of output that an economy can produce when operating at a full employment level, where all available labor and resources are being used efficiently.

Government Securities

Financial instruments issued by the government to finance its expenditures, offering investors a relatively safe investment option compared to other securities.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from a country's central bank.