Table 10-4 -Refer to Table 10-4. for Steak and Cheese and Grilled

question 33

Multiple Choice

Table 10-4

-Refer to Table 10-4. For steak and cheese and grilled chicken sandwiches, the table contains the values of the marginal utility (MU) and marginal utility per dollar (MU/P) for Mabel Jarvis. Mabel has $14 to spend on steak and cheese and grilled chicken sandwiches. Which of the following statements is true?

• A) If Mabel maximizes her utility she will buy three steak and cheese sandwiches and two grilled chicken sandwiches.
• B) If Mabel was maximizing her utility when spending $14 and then received an additional $4, she would receive the most marginal utility per dollar if her next purchase was another grilled chicken sandwich.
• C) Mabel will first buy two steak and cheese sandwiches; then with her remaining $6 she will buy three grilled chicken sandwiches.
• D) To maximize her utility, Mabel will need a total of $36, the income needed to buy 6 steak and cheese sandwiches and 6 grilled chicken sandwiches.

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Definitions:

Wage Equalization

The concept of aligning wages or salaries across different regions, industries, or roles to achieve fairness and balance.

Remittances

Money sent by individuals working abroad back to their home country, often to support family members.

Brain Drain

The phenomenon of skilled professionals emigrating from one country to another, often in search of better opportunities.

Cash Welfare Payments

Government-provided financial assistance to individuals or families, often aimed at reducing poverty.