Adhira buys chocolates and almonds. She has 3 bars of chocolates and 4 bags of almonds. The marginal utility of the third chocolate bar is 18 units of utility and the marginal utility from the fourth bag of almonds is also 18
Is Adhira maximizing her utility?
A) No, she must buy 1 more chocolate bar to equate her quantities of the two goods.
B) No, she must cut back to 3 bags of almonds to equate her quantities of the two goods.
C) No, without information on her income and the prices of the two goods, we cannot answer the question.
D) Yes, the marginal utility from the last unit of each good is equal.
C
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A) A decrease in the marginal propensity to consume B) An increase in the price level C) An increase in the real interest rate D) An increase in expected future disposable income E) An increase in disposable income
The "incidence of a tax" is the term used to indicate
a. the responsibility for collecting the tax. b. who actually bears the tax burden. c. who the tax is initially levied on. d. the regressive rate structure of the tax.