Assume that you allocate your income to calzones and juice and that you have not yet spent your entire budget. If the marginal utility of a fourth calzone is 100 and the marginal utility of a third glass of juice is 50, you would
a. eat a fourth calzone because it has higher marginal utility
b. drink a third glass of juice
c. drink a third glass of juice if its price is lower than the price of calzones
d. drink a third glass of juice if its price is less than half the price of the calzone
e. drink a third glass of juice because it has lower marginal utility
Question 2
Assume that you allocate your income to calzones and juice and that you have not yet spent your entire budget. If the marginal utility of a fourth calzone is 100 and the marginal utility of a third glass of juice is 50, you would
a. eat a fourth calzone because it has a higher marginal utility
b. drink a third glass of juice because you've had less juice
c. consider the total utility received so far from calzones and juice before deciding what to consume next
d. consider the relative prices of calzones and juice before deciding what to consume next
e. consider whether or not marginal utility is diminishing before deciding what to consume next
The More Things Change, The More They Say the Same: Dividing the Nation's Income
How the Distribution of Education Affects the Distribution of Income
Intergenerational Income Mobility in the United States
Income per Capita versus Total Fertility Rate
Capital’s Share of Income in a Cross-Section of Countries
Time spent on, paid work and housework, by living arrangements of Canadian