Which One of the Following Statements Is True

question 61

Multiple Choice

Which one of the following statements is true?

• A)Since consumers of a good consume this good until the price equals the value of the last unit,they clearly get no benefit from consuming this good.
• B)Consumers choosing between goods X and Y will set MU_X = MU_Y.
• C)The value of a good to a consumer is measured by the price.
• D)Consumer surplus on a unit of a good will never be zero.
• E)If the marginal utility per dollar of good X is less than the marginal utility per dollar of good Y,then the consumer should shift some spending from X to Y.

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Definitions:

Assumption

A thing that is accepted as true or as certain to happen, without proof.

Justification

A reason or argument that explains why a particular action, belief, or statement is reasonable or necessary.

Premise

A prior assertion or claim from which another conclusion is drawn or follows logically.

Simp

Slang for someone who demonstrates excessive sympathy or attention towards another person, often without reciprocation.