Terence Has $50 Per Week to Spend on Subway Sandwiches

question 205

Multiple Choice

Terence has $50 per week to spend on Subway sandwiches and milkshakes.The price of a Subway sandwich is $5 and the price of a milkshake is $4.He buys 6 sandwiches and 5 milkshakes.The marginal utility of the 6th sandwich = 25 and the marginal utility of the 5th milkshake = 24.Which of the following is true?

• A)He is not maximising his utility and should buy more milkshakes.
• B)He is maximising his utility.
• C)He is not maximising his utility and should buy more Subway sandwiches.
• D)He is not maximising his utility because he is not spending all of his income.

---

Definitions:

Individualist Cultures

Societies that stress the importance of personal achievement and independence over collective goals or group cohesion.

Remoralization

The process of regaining a sense of moral commitment or ethical direction, often in a therapeutic or personal development context.

Remediation

The process of correcting or improving a deficiency or problem area, often used in educational and environmental contexts.

Rehabilitation

The process of restoring someone to health or normal life through training and therapy after imprisonment, addiction, or illness.