In the Theory of Consumer Choice, When a Person Is

question 22

Multiple Choice

In the theory of consumer choice, when a person is choosing which good or service to consume, how does he or she select the units of good or service to consume?

• A) ​The person selects the good or service based on need.
• B) ​The person selects the units of a good or service that generates the greatest marginal utility. This process continues until there budget is spent.
• C) ​The person selects the units of a good or service that generates the greatest marginal utility per dollar spent. This process continues until the person's budget is spent.
• D) ​The person randomly selects what they buy until the budget is spent. ​

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Definitions:

Financial Incentives

Monetary or fiscal rewards given to employees or teams to motivate performance and achieve desired outcomes.

Pay-for-Performance Plans

Compensation strategies where employees' pay is based on their performance or achievements.

Performance

The execution and completion of tasks and the accomplishment of goals in a given timeframe, often evaluated against a set of standards.

Turnover

The frequency with which staff members exit a firm and are substituted with new hires.