If by purchasing a little more milk and a little less ice cream you could increase your total utility,
a. the MU of milk must be greater than that of ice cream
b. the MU of ice cream must be greater than that of milk
c. the MU/P of milk must be greater than that of ice cream
d. milk must be cheaper than ice cream
e. the MU of milk will increase
C
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A young college graduate is earning $30,000 per year and would like to borrow $20,000 more for a down payment on a house, but is prevented from doing so by a "liquidity constraint"
For her, transitory income is likely to be ________ in its entirety, producing an MPC out of transitory income ________ that predicted by the LCH. A) consumed, below B) consumed, above C) saved, below D) saved, above
If voters prefer alternatives closer to their most preferred outcome to alternatives farther away from their most preferred outcome, we can say that voters have _____
a. single-peaked preferences b. double-peaked preferences c. rational preferences d. irrational preferences