The Theory of Consumer Choice Is Based on the Hypothesis

question 210

Multiple Choice

The theory of consumer choice is based on the hypothesis that each consumer wants to

• A)maximize her total utility.
• B)maximize her marginal utility.
• C)minimize the rate at which her marginal utility diminishes.
• D)minimize the percentage of her consumption diverted to inferior goods.

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Definitions:

Ammonia

A compound of nitrogen and hydrogen with the formula NH3, commonly used as a fertilizer and in various industrial processes.

Urea

A nitrogenous compound produced in the liver as a waste product of protein metabolism.

Uric Acid

A waste product formed from the breakdown of purines, which are found in many foods, and is excreted in urine.

Nephridial Organs

Excretory organs found in many invertebrates, functioning similarly to kidneys in removing metabolic wastes from the organism’s body.