Total Utility Is Maximized When a Consumer Has Spent All

question 212

Multiple Choice

Total utility is maximized when a consumer has spent all of his or her income and

• A) spent equal amounts on all goods.
• B) marginal utility is maximized.
• C) the total utility per dollar from all goods is equal.
• D) the marginal utility per dollar from all goods is equal.

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Definitions:

AGI

Adjusted Gross Income is a measure of income calculated from your gross income and used to determine how much of your income is taxable.

Long-term Capital Losses

Financial losses realized from the sale of assets held for more than a year, which can be used to offset capital gains for tax purposes.

Short-term Capital Gains

Profits from the sale of an asset held for a year or less, typically taxed at higher rates than long-term capital gains.

Section 1202

A provision in the U.S. tax code offering exclusion on gains from the sale or exchange of qualified small business stock held for more than 5 years.