Economists Assume That the Objective of Households Is to Maximize

question 41

Multiple Choice

Economists assume that the objective of households is to maximize ________,and that the objective of firms is to maximize ________.

• A) leisure; profits
• B) utility; profits
• C) utility; utility
• D) leisure; utility

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Definitions:

Swiss Francs

The currency used by Switzerland, recognized by its code CHF.

Equivalent

Equivalent means equal in value, function, or meaning, often used in comparisons to denote similarity between different items or concepts.

Exchange Rate

The value of one currency for the purpose of conversion to another, reflecting the market's valuation of one currency compared to another.

U.S. Trade Deficit

The situation where the total value of goods and services imported by the United States exceeds the total value of its exports, reflecting a gap in trade balance.