If the Marginal Utility Per Dollar Is Not the Same

question 103

Multiple Choice

If the marginal utility per dollar is not the same for each good,the consumer could _____ her utility by spending ______ on goods for which the marginal utility per dollar is lower.

• A)decrease,less
• B)increase,more
• C)maximize,more
• D)increase,less

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Definitions:

Holder in Due Course

A party who has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims that could be raised against the prior holder.

Indorsement

The act of signing one's name on a financial document, such as a check, thereby transferring rights or title to another party.

Collection Indorsement

An endorsement on a negotiable instrument, such as a check or promissory note, that specifies the particular person to whom the payment is to be made.

Fictitious Payee Rule

A principle in commercial law that protects the drawer of a check if the check is made payable to a non-existent or not intended recipient, under certain conditions.