In Looking at the Consumption of Two or More Goods

question 120

Multiple Choice

In looking at the consumption of two or more goods,

• A)changes in the amount of one good consumed might affect the amount of utility gained from one or more other goods.
• B)the utility from one good is always independent of how much of any other good is consumed.
• C)utility from some goods must be added, whereas utility from others must be subtracted.
• D)utility from all of the goods must be multiplied to get total utility.
• E)a change in the quantity of one good consumed always affects the amount of utility derived from all other goods.

---

Definitions:

Game Theory

A theoretical framework for conceiving social situations among competing players and predicting their optimal decisions.

Price-fixing

An illegal agreement among competitors to sell a product or service at a predetermined price, rather than letting market forces dictate pricing.

Regional Monopolies

Companies or entities that exclusively control the supply of a particular good or service in a specific geographic area.

OPEC Cartel

The Organization of the Petroleum Exporting Countries, a group of oil-producing nations that coordinates policies and prices of petroleum.