Suppose You Want to Equalize Your Marginal Utility Per Dollar

question 3

Multiple Choice

Suppose you want to equalize your marginal utility per dollar across all the goods that you consume.If your marginal utility per dollar is higher for one of those items than for any others,you should

• A)consume less of it to reduce your marginal utility.
• B)consume more of it to reduce your marginal utility.
• C)consume more of the other goods to equalize your marginal utilities per dollar.
• D)consume more of all goods in equal proportions.

---

Definitions:

Keynesian

Relating to the economic theories of John Maynard Keynes, advocating for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of depression.

Classical

Pertains to the classical school of economic thought, focusing on free markets and the self-regulating nature of economies, emphasizing the roles of competition and supply and demand.

Monetarists

Monetarists are economists who believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods.

Supply Side

An economic theory that emphasizes the importance of increasing production and supply as a way to stimulate economic growth, often through tax cuts and deregulation.