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:

Behavioral Self-Monitoring

The practice of systematically observing, analyzing, and recording one's own behaviors and responses.

Skills Training

A process of teaching specific abilities or competencies to enhance performance in tasks or activities.

Cognitive Therapy

A type of psychotherapy that focuses on changing negative patterns of thought to alter unwanted behavior patterns or treat mood disorders such as depression.

Systematic Desensitization

A therapeutic method used to reduce phobia or anxiety through gradual exposure to the feared object or situation combined with relaxation techniques.