Economists Assume That, Within a Given Budget, Consumers Will

question 99

Multiple Choice

Economists assume that, within a given budget, consumers will

• A)maximize average utility
• B)minimize average utility
• C)maximize total utility
• D)face diminishing total utility after consuming the first unit of a good
• E)continue to consume a good until its utility is negative

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Definitions:

Norms

Shared expectations or rules within a society or group about how members should act.

Personality Test

A questionnaire or other standardized instrument designed to reveal aspects of an individual's character or psychological makeup.

Established Standards

Officially recognized criteria or benchmarks that are widely accepted and used as a basis for comparison or judgment.

Criterion Validity

The extent to which a measure is related to an outcome or, more specifically, the effectiveness of a test in predicting an individual's behavior in specific contexts.