If a Consumer Concludes That the Marginal Utility of the Last

question 265

Multiple Choice

If a consumer concludes that the marginal utility of the last dollar spent on vegetables exceeds the marginal utility of the last dollar spent on junk food, he will respond by

• A) consuming relatively more junk food and fewer vegetables.
• B) consuming relatively more vegetables and less junk food.
• C) consuming equal amounts of vegetables and junk food.
• D) halting consumption of junk food altogether.

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Definitions:

Corporate Bond

A debt security issued by a corporation and sold to investors, with the promise of interest payments and the return of principal at maturity.

Tax Bracket

Ranges of income taxed at particular rates, which typically progress from low to high depending on the taxable income level.

Taxable

Refers to income or transactions that are subject to tax by governmental authorities.

Corporation B

A term that likely refers to a specific entity within a context, but without further information, it's undefined in its application here.