The Combination of Goods and Services That Maximizes Utility for a Given

question 100

Multiple Choice

The combination of goods and services that maximizes utility for a given income is called

• A) diminishing marginal utility.
• B) the real-income effect.
• C) marginal utility.
• D) the substitution effect.
• E) the consumer optimum.

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Definitions:

Neutral

Not favoring any side in a dispute, contest, or situation; unbiased or impartial.

Unconditioned Stimulus

A stimulus that naturally triggers a response without any need for prior learning.

Stimulus Discrimination

The ability to differentiate between a conditioned stimulus and other stimuli that have not been paired with an unconditioned stimulus.

Organism

A living entity capable of growth, reproduction, and often response to external stimuli, ranging from single-celled forms like bacteria to complex multicellular entities like humans and plants.