When a Consumer Spends Income So That the Ratio of Marginal

question 100

Multiple Choice

When a consumer spends income so that the ratio of marginal utilities (MUs) of all goods purchased equals the ratio of their prices, the consumer is

• A)maximizing marginal utility
• B)spending too much on all goods
• C)maximizing total utility
• D)beyond the point of diminishing marginal utility
• E)behaving in opposition to the principal of rational behavior

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Definitions:

Ambiguous

Describes information, statements, or situations that can be understood or interpreted in more than one way.

Psychosexual Stages

A series of stages in Freudian theory through which a child’s personality develops, each characterized by erogenous zones and conflicts.

Mature Sexual Relationships

Relationships that involve deep emotional connections, mutual respect, and a healthy perspective on sexual activity within the context of the relationship's overall dynamics.

Genital

Relating to the external and internal organs of reproduction, often becomes a primary focus during puberty according to Freudian psychology.