If a Consumer Allocates Income Between Goods a and B

question 53

Multiple Choice

If a consumer allocates income between goods A and B, total utility is maximized when:

• A) the marginal utility of A = the marginal utility of B.
• B) the marginal utility of A = the marginal utility of B = 0.
• C) the price of A = price of B.
• D) marginal utility of A / price of A = marginal utility of B / price of B = 0.
• E) marginal utility of A / price of A = marginal utility of B / price of B.

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Definitions:

Mill Rate

A tax rate used to calculate local property taxes, expressed in a millage rate, which is one thousandth of a currency unit.

Agricultural Land

Land designated for the purpose of farming and cultivation to produce food and other agricultural products.

Property Taxes

Taxes levied by local governments based on the assessed value of real estate property.

HST Remittance

The process of sending payments of the Harmonized Sales Tax collected by businesses to the relevant tax authority.