Which of the Following Occur When a Person Maximizes Utility

question 345

Multiple Choice

Which of the following occur when a person maximizes utility? I. The marginal utility of each good bought is equal.
II) The highest level of utility is attained.
III) All of a person's budget is spent.

• A) I and II
• B) I and III
• C) II and III
• D) I, II and III

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Definitions:

Mean

A measure of central tendency, calculated as the sum of all values in a dataset divided by the number of values.

Geometric Mean

The average of a set of numbers or quantities, computed by taking the nth root of the product of the numbers.

Mode

The value that appears most frequently in a data set, a measure of central tendency.

Variance

A measure of the dispersion or spread of a set of data points, calculated as the average of the squared differences from the mean.