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.

---

Definitions:

Temporal Lobe

A region of the cerebral cortex involved in processing sensory input and assigning it emotional meaning, as well as in language, learning, and memory.

Permanent Memory

A term often used colloquially to describe long-term memories that are believed to be stored indefinitely in the brain.

Occipital Lobe

The rearmost lobe in each cerebral hemisphere of the brain, responsible for processing visual information.

Hypothalamus

A small but crucial part of the brain involved in numerous bodily functions, including temperature regulation, thirst, hunger, sleep, mood, and the release of other hormones within the body.