If the marginal utility per dollar spent on Good X exceeds that of Good Y, the utility-maximizing consumer should:
a. buy less of Good X and more of Good Y.
b. buy less of Good Y and more of Good X.
c. buy more of both Good X and Good Y.
d. buy less of both Good X and Good Y.
Question 2
If a resource is purchased and sold in a perfectly competitive market:
a. there are a large number of resource suppliers and the resources are identical.
b. there is a single buyer of resource and the resources are identical.
c. there is a single buyer of resource and the resources are differentiated.
d. there are a large number of resource suppliers and the resources are differentiated.
e. there are a large number of resource suppliers and there is no entry or exit.
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