The Statement "Households Maximize Utility" Means That Households

question 163

Multiple Choice

The statement "Households maximize utility" means that households:

• A)try to be as useful as possible to the economy.
• B)are only interested in maximizing their earnings.
• C)are assumed to buy useful things before they buy luxuries.
• D)are only interested in acquiring material wealth.
• E)are assumed to do what they think will most increase their satisfaction.

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Definitions:

Grouped Data

Data that is organized into intervals or groups for the purpose of analysis.

Individual Data Values

These are the specific observations or measurements collected in a study or analysis.

Descriptive Statistics

Statistical methods that summarize and organize characteristics of data sets, such as mean, median, mode, and range.

Variability

The extent to which data points in a statistical distribution or data set diverge from the average or mean value.