... Refer to the above table. To maximize utility, the consumer will buy: 2 A an
ID: 1179463 • Letter: #
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Refer to the above table. To maximize utility, the consumer will buy: 2 A and 3 B 4 A and 2 B 4B 6 A and 1 B Refer to the above table. If the price of B falls to $1, while the price of A and the consumer's income stay the same, what would be the utility-maximizing combination of goods A and B? 5 A and 3 B 4 A and 4 B 3 A and 5 B 2 A and 6 B A consumer has two basic choices: rent a DVD movie for $4.00 and spend 2 hours watching it, or spend $ 13 for a miniature golf game that takes 1 hour. If the marginal utilities of the movie and the miniature golf game are equal, and the consumer values time at $12 an hour, the rational consumer will most likely: Rent the movie instead of playing miniature golf Play miniature golf instead of renting the movie Be indifferent between the movie and the miniature golf game Not have enough basis for making a utility-maximizing decision Health insurance often pays 80 percent of health care cost. This situation will encourage the rational consumer to: Consume less health care because the cost is too expensive Obtain health insurance that pays less than 80 percent of medical care costs Use more medical services than they would if they had to paid the full price Eliminate their health care coverage because it does not cover 100 percent of the cost The following statements about behavioral economics are true, except: Its insights help policymakers determine how to nudge people to make certain choices It combines insights from economics, psychology, and neuroscience to better understand how people behave It assumes that people are always rational, deliberate, and objective in their choices It studies how people deal with choices involving "goods" as well as "bads" Prospect theory in behavioral economics predicts that as the price of flour increases, bakeries will: Increase the unit prices of their products Reduce the unit sizes of their products Produce more units of their products Buy more flour for their productsExplanation / Answer
20)4+12+12=28
13+12=25
option B
because he loses little money for same satisfaction
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