Questions: Suppose you are given a 100 gift card and you choose to spend it on a number of goods. You will select a combination of goods that is best for you and that maximizes your satisfaction. Your choices will involve which of the following? - An evaluation of the unlimited resources used in the production of each good considered - A decision between attainable and unattainable combinations of the goods under consideration - A comparison of marginal benefits and marginal costs for each good considered - The available supply of each good considered

Suppose you are given a 100 gift card and you choose to spend it on a number of goods. You will select a combination of goods that is best for you and that maximizes your satisfaction. Your choices will involve which of the following?
- An evaluation of the unlimited resources used in the production of each good considered
- A decision between attainable and unattainable combinations of the goods under consideration
- A comparison of marginal benefits and marginal costs for each good considered
- The available supply of each good considered
Transcript text: Suppose you are given a $\$ 100$ gitt card and you choose to spend it on a number of goods. You will select a combination of goods that is best for you and that maximizes your satisfaction. Your choices will Involve which of the following? An evaluation of the unlimited resources used in the production of each good considered A decision between attainable and unattainable combinations of the goods under consideration A comparison of marginal benefits and marginal costs for each good considered The avallable supply of each good considered
failed

Solution

failed
failed

The answer is the second one: A decision between attainable and unattainable combinations of the goods under consideration.

Explanation for each option:

  1. An evaluation of the unlimited resources used in the production of each good considered: This option is incorrect because resources are typically limited, not unlimited. The decision-making process for spending a gift card does not involve evaluating the resources used in production, but rather focuses on the consumer's preferences and budget constraints.

  2. A decision between attainable and unattainable combinations of the goods under consideration: This option is correct. When you have a fixed budget, like a $100 gift card, you must decide which combinations of goods you can afford (attainable) and which you cannot (unattainable). This involves considering the prices of the goods and ensuring the total cost does not exceed the budget.

  3. A comparison of marginal benefits and marginal costs for each good considered: This option is also relevant to decision-making, but it is more about optimizing satisfaction rather than strictly about budget constraints. While comparing marginal benefits and costs is important for maximizing satisfaction, the primary focus in this context is on attainable combinations given the budget.

  4. The available supply of each good considered: This option is incorrect in the context of spending a gift card. While supply can affect availability and prices, the decision-making process for spending a fixed amount of money is more about personal budget constraints and preferences rather than the overall supply of goods.

In summary, when spending a $100 gift card, the key decision involves choosing combinations of goods that are within your budget, making the second option the most relevant.

Was this solution helpful?
failed
Unhelpful
failed
Helpful