Mr Samuelson's Current Rates of Purchase Are Such That the Marginal

question 143

Multiple Choice

Mr. Samuelson's current rates of purchase are such that the marginal utility of slacks is 18 and the marginal utility of ties for him is 5. If slacks and ties are priced at $12 and $2, respectively, it can be concluded that Mr. Samuelson

• A) is spending too much on slacks and not enough on ties.
• B) is spending too much on ties and not enough on slacks.
• C) is spending his income in such a way as to maximize his satisfaction.
• D) should buy six times as many ties as he does slacks.

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Definitions:

Mesoamerican Societies

Ancient civilizations that existed in the Mesoamerican region before the Spanish colonization of the Americas, including the Aztec, Maya, and Olmec among others.

Social Hierarchy

A system of organizing people into different ranks or levels of importance, often based on factors like wealth, occupation, or inherited status.

Olmec

An early Mesoamerican civilization known for its monumental sculpture, including colossal heads, and significant advancements in trade, agriculture, and hieroglyphic writing.

Ritual Observances

Ceremonies or practices performed in a set, traditional manner, often religious or spiritual in nature, marking significant events or beliefs.