The Concept of Utility Maximization

question 94

Multiple Choice

The concept of utility maximization:

• A) is solely used to measure an individual's satisfaction with his consumption choices.
• B) can be used broadly to think about choices made motivated by satisfaction, envy, status, or kindness.
• C) assumes each individual seeks to increase his own personal satisfaction regardless of others.
• D) None of these is true.

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Definitions:

Dollar Amount

A numerical monetary value specified in units of currency, specifically the United States dollar.

Compound-Interest GIC

A Compound-Interest Guaranteed Investment Certificate is a type of investment where the interest earned is reinvested and earns interest itself, over the term of the GIC.

Maturity Value

Maturity Value is the amount payable to an investor at the end of a fixed-term investment, including the principal and the interest earned.

Dollar Amount

A numerical value specifying an amount of money in terms of the dollar currency.