At the Utility Maximizing Equilibrium for Two Goods, X and Y

question 326

Multiple Choice

At the utility maximizing equilibrium for two goods, X and Y, which of the following must be TRUE?

• A) The marginal utility per dollar spent on X will exceed the marginal utility per dollar spent on Y.
• B) The total expenditure will be the same for each good.
• C) The marginal utility per dollar from X equals the marginal utility per dollar from Y.
• D) The marginal utility will be the same for each good.

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Definitions:

Direct Service

A type of social service delivery that involves providing immediate assistance to individuals or groups to meet their needs.

Private Markets

Markets that operate with financial transactions not open to the public or regulatory oversight, often involving private equity, venture capital, and real estate.

Ethical Standpoint

A perspective or stance taken on an issue that is based on a set of moral principles or values.

Inequalities

The state of being unequal, referring to disparities in resources, wealth, opportunities, and rights among individuals or groups.