Which of the Following Statements Is Always True When Determining

question 144

Multiple Choice

Which of the following statements is always true when determining the consumer optimum?

• A) Maximizing utility does not take budget restraints into consideration.
• B) Maximizing utility is easy if you are considering only two goods.
• C) Maximizing utility requires the marginal utility per dollar to be equal for each good consumed.
• D) Maximizing utility requires the total utility per dollar to be equal for each good consumed.
• E) Maximizing utility requires the marginal utility to be equal for each good.

---

Definitions:

Medium Of Exchange

Anything that facilitates trade by being generally accepted by all parties in payment for goods or services.

Facilitates Trade

Actions or policies designed to make trade between countries or parties easier, typically through reducing barriers such as tariffs and quotas.

Barter

The direct exchange of one product for another without using money.

Medium Of Exchange

Anything that is widely accepted as a means for the payment of goods and services and repayment of debts.