Which One of the Following Statements Is True

question 2

Multiple Choice

Which one of the following statements is true?

• A)Since consumers of a good consume this good until the price equals the value of the last unit, they clearly get no benefit from consuming this good.
• B)Consumers choosing between goods X and Y will set MUX = MUY.
• C)The value of a good to a consumer is measured by the price.
• D)Consumer surplus on a unit of a good will never be zero.
• E)If the marginal utility per dollar of good X is less than the marginal utility per dollar of good Y, then the consumer should shift some spending from X to Y.

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Definitions:

Economic Sociologists

Scholars who study the social cause and effect of various economic phenomena, including markets, organizational behaviors, and economic policies.

Regulated Markets

Markets that are subject to oversight and control by government or other regulatory bodies to ensure fair practices and protect consumers.

Free Market

In a free market, prices are determined only by supply and demand.

Democratic Socialist

Countries are characterized by government ownership of some basic industries and substantial government intervention in the operation of the market.