A Rational Consumer Maximizes Her

question 340

Multiple Choice

A rational consumer maximizes her

• A)preferences.
• B)marginal rate of substitution.
• C)utility.
• D)budget constraint.

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Definitions:

Inflation

The rate at which the standard pricing for all goods and services moves upward, reducing the leverage of consumers to buy.

World Commodities

Raw materials or primary agricultural products that are traded on a global scale, which can include oil, gold, wheat, and coffee.

Price Level

The current mean value of prices for every good and service available in the economy.

Output

The total amount of goods or services produced by a person, machine, business, or country.