If a Consumer Buys Two Goods, the Rational Spending Rule

question 55

Multiple Choice

If a consumer buys two goods, the rational spending rule requires that the:

• A)total expenditure on the two goods be equal.
• B)ratio of total utility to price be equal for the two goods.
• C)ratio of average utility to price be equal for the two goods.
• D)ratio of marginal utility to price be equal for the two goods.

Explain the role and perception of whistleblowers in promoting ethical behavior within organizations.

Differentiate between economic, legal, ethical, and discretionary responsibilities of organizations.

Evaluate the impact of corporate actions on stakeholders and the broader society.

Understand the concept of the virtuous circle in CSR and its implications for business and society.

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Definitions:

Mean Number

The average value of a set of numbers, calculated by dividing the sum of all the numbers by the count of the values.

Binomial Variable

A type of random variable that takes on one of two possible outcomes, for instance, success or failure, often with a fixed probability of occurrence.

Race

A socially constructed category that groups people based on physical characteristics, such as skin color or facial features.

Education

The act of imparting or acquiring knowledge, particularly in an institutional setting like a school or university.