Rational Utility Maximizing Consumers Tend To

question 102

Multiple Choice

Rational utility maximizing consumers tend to:

• A)buy the same bundle of goods regardless of the prices charged.
• B)choose the same bundle of goods regardless of their income.
• C)change their consumption choices when either prices or income changes.
• D)change their consumption choices only when both prices and income change simultaneously.

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Definitions:

Savings Account

A deposit account held at a bank or other financial institution that provides modest interest income.

Daily Closing Balance

The total amount of money in an account at the end of the trading day, reflecting all transactions processed that day.

Simple Interest Rate

A method of calculating interest where the interest charge is based on the original principal only.

Payments

Transfers of money in exchange for goods or services or as fulfillment of obligations under a contract.