Refer to the Following Table to Answer the Following Questions

question 1

Multiple Choice

Refer to the following table to answer the following questions:

-For 2 chips and 5 sodas to be a combination of goods that maximizes someone's utility per dollar,the price of chips must be ________ if the price of soda is $1.00.

• A) $2.00
• B) $3.00
• C) $2.50
• D) $3.50
• E) $3.75

---

Definitions:

Government Expenditures

The total amount spent by the government on goods, services, and public projects.

State and Local Governments

Governmental authorities below the national level, responsible for local administration and governance within their respective areas.

Direct Income Transfers

Financial payments given by the government to individuals without any requirement for goods or services in return, often aimed at reducing income inequality.

Government Spending

The total amount of public sector expenditure, including salaries of public servants, social security benefits, and investment in infrastructure.