Economists Assume That an Individual Chooses the Option That

question 14

Multiple Choice

Economists assume that an individual chooses the option that:

• A)gives the individual the least utility.
• B)gives the individual the most utility.
• C)creates the most utility for society.
• D)is the most efficient choice.

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Definitions:

Inverse Demand

A representation of demand that expresses price as a function of quantity demanded, contrary to the typical demand function.

Inverse Supply

A concept in economics that describes a situation in which the supply of a good decreases as its price decreases, opposite to the normal supply behavior.

Tax

Mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Excess Demand

A situation where the quantity demanded of a good exceeds the quantity supplied at a particular price, leading to a shortage.