Maxine Has a Fixed Income Per Month to Spend on Goods

question 22

Multiple Choice

Maxine has a fixed income per month to spend on goods and services,so in allocating her limited income over a set of goods,she should purchase the goods that

• A) have the highest utility regardless of price.
• B) have the highest marginal utility.
• C) provide the most utility per dollar spent.
• D) have equal marginal utilities.

---

Definitions:

Problem-solution

A method of organizing information or arguments that first identifies a problem and then proposes one or more solutions for it.

Specific-to-general

A method of organization where details start with specific instances and lead to a general conclusion or understanding.

Cause-and-effect

A relationship in which one event (the cause) makes another event happen (the effect), indicating a linkage between actions and outcomes.

Problem-solution

A method or format used to describe an issue and propose remedies or strategies for addressing it, common in writing, presentations, and analytical discussions.