If the Consumer Is Willing to Give Up 3 Units

question 48

Multiple Choice

If the consumer is willing to give up 3 units of food (vertical axis) in exchange for one unit of shelter (horizontal axis) and food is priced at 10 and shelter at 20, then the consumer is purchasing

• A)too much food for utility maximization.
• B)too much shelter for utility maximization.
• C)just the right amount of each good for utility maximization.
• D)less than the budget would allow.

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Definitions:

Benchmark Jobs

Positions that are common across industries, used to make comparisons for purposes of salary surveys and establishing pay scales.

Pay Grade

A step or level within a pay structure that determines the amount of compensation an employee receives.

Formal Operational

The final stage in Piaget’s theory of cognitive development, characterized by the ability to think abstractly, reason logically, and use deductive reasoning.

Abstract Thinking

The capability to understand concepts that are real, such as freedom or love, which are not directly tied to concrete physical reality.