Individuals Maximize Utility in Allocating Their Time Only When

question 128

Multiple Choice

Individuals maximize utility in allocating their time only when

• A)any change in their use of time reduces their total satisfaction
• B)they consciously and carefully weigh the expected marginal utilities per unit
• C)they consciously and carefully weigh the actual marginal utilities per unit of time spent in each activity
• D)the expected average utility of each activity is equal
• E)people make a concerted effort to measure satisfaction

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Definitions:

Coterie

An exclusive group or circle of people with a shared interest or purpose, often characterized by a strong sense of unity or loyalty.

Bureaucracy

A large, impersonal organization composed of many clearly defined positions arranged in a hierarchy. A bureaucracy has a permanent, salaried staff of qualified experts and written goals, rules, and procedures. Staff members always try to find ways of running the bureaucracy more efficiently.

Business

Economic activities that involve providing goods or services with the motive of earning profit.

Salaried Staff

Employees who receive a fixed compensation regularly (usually monthly or biannually) regardless of the number of hours worked.