Use the Following to Answer Questions

question 52

Multiple Choice

Use the following to answer questions :
-(Table: Consumer Equilibrium) Use Table: Consumer Equilibrium.Assume that the price of good X is $1 per unit and the price of good Y is $2 per unit,that you consume four units of good X and two units of good Y,and that you are spending all of your income.To maximize utility,assuming that the goods are divisible,you would consume _____ of X and _____ of Y.

• A) less;less
• B) more;more
• C) less;more
• D) more;less

Differentiate between relevant and irrelevant costs for decision making.

Comprehend the role of opportunity costs in decisions.

Evaluate the relevance of variable and fixed costs in specific decision contexts.

Discern the impact of sunk costs on decision making and clarify that they are never relevant.

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Definitions:

Collectivist Culture

Cultures that emphasize the needs and goals of the group as a whole over the needs and wishes of each individual.

Holier-Than-Thou Effect

A cognitive bias where individuals overestimate their moral qualities or behaviors in comparison to others.

Most Likely

Refers to the highest probability or chance of an event or outcome occurring.

Country

A distinct territory defined by geographical borders, governance, and sovereignty, often recognized as a nation or state.