Helen Is a Computer Analyst Earning $750,000 a Year in New

Multiple Choice

Helen is a computer analyst earning $750,000 a year in New York and flies each winter weekend to Florida to bask in the sun. The price tag is $1,500. Her cousin Fred is a nursery school teacher earning $35,000 a year in Chicago and spends his winter weekends going to avant-garde movie theaters. The price tag is $20. Who gets the betterdeal?

A) Helen gets the better deal because the marginal utility of the Florida weekend is
Higher than the weekend of movies, regardless of the price tags.
B) Helen gets the better deal because the ratio of marginal utility to price is higher than
The ratio of marginal utility to price for a weekend of movies.
C) Fred gets the better deal because the ratio of marginal utility to price is higher than
The ratio of marginal utility to price for a Florida weekend.
D) Using interpersonal comparisons of utility, it is clear that Fred gets the better deal
Because the difference in price overwhelms any difference in the marginal utility of a
Weekend of movies compared to a weekend in Florida.
E) It is impossible to say who gets the better deal because we can't engage in
Interpersonal comparisons of utility.