Phillip Is Deciding Between Consuming Good X and Good Y

question 112

Multiple Choice

Phillip is deciding between consuming Good X and Good Y. At his current level of consumption, his marginal utility per dollar for Good X is less than the marginal utility per dollar for Good Y. To achieve the consumer optimum, Phillip needs to:

• A) consume more of Good Y until the marginal utility per dollar for Good X is greater than the marginal utility for Good Y.
• B) consume less of Good X or more of Good Y until the marginal utility per dollar for Good X and Good Y is equal.
• C) consume more of both Good X and Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X.
• D) consume less of both Good X and Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X.
• E) continue at his current level of consumption.

---

Definitions:

Baby Boom Generation

The demographic cohort following World War II, typically defined as those born from 1946 to 1964, known for its significant size and economic impact.

Retirement Age

The age at which an individual is eligible to leave their job or profession and begin to receive pension benefits, varying by country and occupation.

Deficit Years

Years in which a government's expenditures exceed its revenues, resulting in a budget deficit.

Trust Fund Bonds

Financial securities issued by a trust to raise capital, often backed by other assets.