If a Consumer Spends All of His or Her Income

question 129

Multiple Choice

If a consumer spends all of his or her income and the marginal utility per dollar is equal for all goods, then

• A) marginal utility is maximized.
• B) total utility is maximized.
• C) a consumer could not be better off even with greater income.
• D) the proportion of income spent on each good must be equal.

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Definitions:

Affective Disorder

A class of mental health disorders characterized by significant and persistent changes in mood or emotions, often including depression and bipolar disorder.

Delusion

A strongly held belief that is clearly false or has no basis in reality, often indicative of a psychological disorder.

Loose Association

A thinking disorder characterized by a disorganized speech pattern, where ideas shift from one topic to another in a barely related or unrelated manner.

Neologism

The creation or use of new words or expressions.