For the Consumer to Act Rationally (I

question 44

Multiple Choice

For the consumer to act rationally (i.e., achieve the greatest amount of satisfaction) , he or she must:

• A)maximize the sum of the marginal utilities of the last unit purchased of all goods in his or her budget.
• B)equalize the marginal utilities of the last unit purchased of all commodities.
• C)purchase no inferior goods.
• D)equalize the marginal utilities of the last dollar spent upon each commodity or service purchased.
• E)do none of the above.

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Definitions:

Operating Leases

An agreement that allows for the use of an asset but does not grant ownership rights of the asset to the lessee.

Loss Contingency

A potential financial liability that may occur depending on the outcome of a future event.

IFRS

International Financial Reporting Standards, a set of global accounting standards developed by the International Accounting Standards Board.