Figure: Consumption Bundle Refer to the Figure

question 134

Multiple Choice

Figure: Consumption Bundle Refer to the figure. Which statement is FALSE?

• A) The optimal consumption bundle contains five movie downloads and 10 music downloads.
• B) The MRS is 0.50 at the optimal consumption bundle.
• C) The price per music download is half as expensive as the price per movie download.
• D) In the optimum consumption bundle, the marginal utility of movie downloads equals half the marginal utility of music downloads.

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Definitions:

Recent Lava Flows

Molten rock that has erupted from a volcano and solidified on the earth's surface in the recent geological past.

Angular Unconformity

A geological feature where newer layers of sediment or rock rest upon older layers that have been tilted or folded, indicating a significant change in depositional environments.

Rocks Folded

refers to the bending and curving of rock layers under pressure, without the layers breaking.

Flat-lying Layers

Horizontal strata of sedimentary rock that have not been significantly tilted or disturbed since their deposition.