Michael Kawamura, a Careful Maximizer of Utility, Consumes Only Two

question 219

Multiple Choice

Michael Kawamura, a careful maximizer of utility, consumes only two goods, peanut butter and ice cream.He had just achieved the utility-maximizing solution in his consumption of the two goods when the price of peanut butter fell.As he adjusts to this event he will consume:

• A) more peanut butter and less ice cream.
• B) less peanut butter and less ice cream.
• C) more peanut butter and more ice cream.
• D) less peanut butter and more ice cream.

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Definitions:

Liberty of Conscience

The freedom to follow one's own beliefs in matters of religion and morality without coercion.

British North America

Term referring to the British colonies and territories in North America, including Canada, during the period from the 16th century until 1783, when Britain recognized American independence.

Immigrants

People who have moved to a new country with the intention of settling there, often in search of better living conditions, employment, or safety.

Liberties

The absence of constrictive control by governing bodies on an individual’s lifestyle, behaviors, or political perspectives in a societal setting.