The Below Table Shows the Average Utility (In Utils) Obtained

question 32

Multiple Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-According to utility theory, a consumer is in equilibrium when:

• A)total income is spent.
• B)marginal utility per dollar spent for a good is maximized.
• C)total utility per unit of a good is maximized.
• D)total utility per dollar spent is equal for all goods.
• E)marginal utility per dollar spent is equal for all goods.

---

Definitions:

Net Investment

The total amount spent by a company or economy on capital assets, minus depreciation, reflecting the increase in value of the entity's productive capacity.

Capital Stock

The total value of machinery, buildings, and equipment owned by businesses used to produce goods and services.

Gross Investment

Refers to the total amount of money invested in the creation of new capital assets in an economy within a specific time period, without deducting depreciation.

Corporate Taxes

Taxes imposed on the income or profit of corporations by the government.