Which of the Following Is (Are) True

question 147

Multiple Choice

Which of the following is (are) true?

• A) The goal of a consumer is to maximize utility.
• B) A consumer will consume each good at a level that yields the maximum utility possible.
• C) Rich consumers are not constrained by income or budget constraints.
• D) A and C are true.

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Definitions:

Isoquant

A curve representing all combinations of inputs that produce the same level of output in the production process, analogous to an indifference curve in consumption.

Inputs

Resources used in the production process to create goods and services, including labor, materials, and capital.

Total Output

The total quantity of goods or services produced by a firm or economy over a specific period.

Isoquants

Curves that represent the combinations of inputs that yield the same level of output, used in production theory.