Economists Might Disagree on a Question of Policy Because

question 30

Multiple Choice

Economists might disagree on a question of policy because:
(i) They have made different assumptions
(ii) They have different normative views on policies
(iii) They disagree about the role economics should play in society

• A)(i)
• B)(ii)
• C)(i) and (ii)
• D)(i), (ii) and (iii)

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Definitions:

Utility Maximization

An economic principle that suggests consumers aim to get the greatest satisfaction possible from their available resources.

Consumer's First

A philosophy or policy placing consumer interests and satisfaction at the forefront of business decision-making.

Marginal Utility-To-Price Ratio

The comparison of the additional satisfaction received from consuming one more unit of a good to the price of that unit, used to maximize utility.

Utility Maximization

The concept in economics that individuals or households will attempt to get the greatest satisfaction possible from their available resources.