Consumers Maximize Their Utility When

question 118

Multiple Choice

Consumers maximize their utility when:

• A) the total benefits are greater than total costs.
• B) the marginal utility per dollar is equal across all goods consumed and all income is spent.
• C) they consume the good on which they place the highest overall value.
• D) they diversify their consumption across goods.

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Definitions:

Negotiable Instrument

A formal paper assuring the disbursement of a specified amount of funds, which could be paid either immediately when requested or at a scheduled time, with the document identifying the payor.

Demand Instrument

A type of draft that allows the payee to demand payment at any time from a holder.

Overdue

Pertaining to something that has not been completed, paid, or returned by its expected or agreed-upon deadline.

Liability

The legal responsibility to settle a debt or compensate for harm caused to someone else, often resulting from actions or negligence.