Charlie Has a Utility Function U(x, Y)= (X + 3)(y

question 47

Multiple Choice

Charlie has a utility function U(x, y) = (x + 3) (y + 4) .The price of x is $1 and the price of y is $1.When he maximizes his utility subject to his budget constraint, he consumes positive amounts of both goods.Charlie consumes

• A)2 more units of x than he consumes of y.
• B)1 more unit of x than he consumes of y.
• C)exactly as many units of x as of y.
• D)1 more unit of y than he consumes of x.
• E)None of the above.

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Definitions:

GDP

Gross Domestic Product, a measure of the economic performance of a country, calculated as the total value of all final goods and services produced within a country's borders in a specific time period.

Economic Well-being

The state of individuals or groups having their basic financial and material needs met, along with access to opportunities for a better quality of life.

Self-sufficiency

The ability to fulfill all of one's needs without reliance on external resources, promoting independence and sustainability in living or economic practices.

Labor Force

The sum of individuals with jobs or actively looking for work in an economy.