The Below Table Shows the Average Utility (In Utils) Obtained

question 114

Multiple Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-Jason is trying to decide whether to buy a bagel or a muffin for breakfast. The bagel costs $0.50 and has a marginal utility of 5. The muffin costs $1 and has a marginal utility of 20. Which should he buy and why?

• A)The muffin, because it has a higher marginal utility
• B)The muffin, because it has a lower marginal utility
• C)The bagel, because it costs less
• D)The bagel, because it has a higher marginal utility per dollar
• E)The muffin, because it has a higher marginal utility per dollar

---

Definitions:

Greater Rewards

Refers to the higher benefits or returns that are anticipated or received from taking greater risks or investing significant effort.

Training

The process of teaching or learning specific skills or behaviors, typically to improve performance in a given activity or job.

Lumpenproletariat

A term used in Marxist theory to describe the underclass excluded from the class structure of capitalist societies, including the unemployed and criminals.

Homeless

A condition where individuals lack stable, safe, and permanent housing.