Use the Following for Questions 61-69

question 244

Multiple Choice

Use the following for questions 61-69.

-(Exhibit: Consumer Equilibrium 1) Assume that the price of both goods X and Y is $1 per unit, and you have $7 of income to spend on both goods.To maximize utility, you would consume ________ units of X and _______ units of Y.

• A) 2; 5
• B) 3; 4
• C) 4; 3
• D) 5; 2

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Definitions:

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Inventory Investment

The change in the total value of unsold goods and materials held by businesses over a specific period.

GDP

Gross Domestic Product; the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Government Bonds

Securities issued by a government to raise funds from the public to finance its activities and service its debt.