Liane Maximizes Her Total Utility When She Allocates All of Her

question 299

Multiple Choice

Liane maximizes her total utility when she allocates all of her available income such that the marginal utility per dollar spent on each good

• A) is diminishing.
• B) is maximized.
• C) is the same.
• D) is increasing.

---

Definitions:

Normal Balance

The side of the accounting equation on which increases to an account are recorded, typically debit for assets and expenses, and credit for liabilities, equity, and revenue.

T Account

A graphical representation of a general ledger account that depicts how any changes to that account are reflected on the debit and credit side.

Ledger

A book or collection of accounts in which account transactions are recorded.

Trial Balance

A bookkeeping report that lists the balances in each of an organization's general ledger accounts at a specific point in time.