A Consumer Maximizes Total Utility from a Given Amount of Income

question 45

Multiple Choice

A consumer maximizes total utility from a given amount of income when the

• A)Marginal utility per dollar obtained from the last unit of each good is the same.
• B)Marginal utility of the last unit of each good is the same.
• C)Total utility obtained from each product is the same.
• D)Amount spent for each product is the same.

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Definitions:

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body, controlling and coordinating bodily functions.

Process Information

The act of taking in, interpreting, and making use of information received from the environment or internal thought processes.

Otto Loewi

Nobel Prize-winning physiologist recognized for his discovery of chemical neurotransmission, demonstrating how nerve impulses are transmitted by chemical means.

Synapse

A junction between two neurons, consisting of a minute gap across which impulses pass by diffusion of a neurotransmitter.