Which of the Following Occur When a Person Maximizes Utility

question 345

Multiple Choice

Which of the following occur when a person maximizes utility? I. The marginal utility of each good bought is equal.
II) The highest level of utility is attained.
III) All of a person's budget is spent.

• A) I and II
• B) I and III
• C) II and III
• D) I, II and III

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Definitions:

Explanatory

Term used in statistical analysis to describe a variable that is being used to predict or explain changes in another variable.

Response

The answer or reaction to a question or situation, often gathered in surveys, interviews, or experiments as data for analysis.

Weight (Grams)

A measurement of mass used in the metric system, equivalent to one-thousandth of a kilogram.

Weight (Milligrams)

A measurement of mass, specifically using the milligram unit, denoting one-thousandth of a gram.