A Consumer Maximizes His or Her Utility When Expenditures Are

question 117

Multiple Choice

A consumer maximizes his or her utility when expenditures are allocated such that

• A)the total utility from each good is equal.
• B)the total number of dollars spent on each good is equal.
• C)the utility received from the last unit of each good is equal.
• D)the utility received per dollar spent on the last unit of each good is equal.
• E)the marginal utility is zero for each good consumed utility.

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Definitions:

Alpha Emissions

A type of radioactive decay where an alpha particle, consisting of two protons and two neutrons, is emitted from the nucleus of an atom, reducing its mass and changing its atomic structure.

Negative Externality

A cost that affects a party who did not choose to incur that cost, commonly associated with production or consumption of goods and services.

Government Agency

A government agency is an organization operated by the government to enforce laws, oversee activities, and provide services in a specific area.

Pollution Tax

a tax imposed on the emission of pollutants, intended to provide an economic incentive for businesses and individuals to reduce their environmental impact.