If a Consumer Purchases a Combination of Commodities X and Y

question 39

Multiple Choice

If a consumer purchases a combination of commodities x and y such that MUₓ/Pₓ = 50 and MUᵧ/Pᵧ = 40, to maximize utility, the consumers should buy.

• A) more of x and less of y.
• B) more of both x and y.
• C) less of x and more of y.
• D) less of both x and y.

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Definitions:

Capitalists

Individuals or entities that own capital goods or investments and use them to generate wealth through production, distribution, and the sale of goods and services.

Embraced Capitalism

The process of adopting capitalist economics and practices, characterized by private ownership, profit motive, and market competition.

Central Planning

An economic system where the government makes all decisions on the production and distribution of goods and services, aiming to control the economy.

Standard of Living

The degree of wealth and material comfort available to a person or community, measured by factors such as income, quality of housing, and access to services.