Individuals Achieve Maximum Utility in the Allocation of Their Time

question 33

Multiple Choice

Individuals achieve maximum utility in the allocation of their time when _____

• A)any change in their use of time reduces their total satisfaction.
• B)they consciously and carefully weigh the expected marginal utilities per unit.
• C)they consciously and carefully weigh the actual marginal utilities per unit of time spent in each activity.
• D)the expected average utility of each activity is equal.
• E)people make a concerted effort to measure satisfaction.

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Definitions:

Equilibrium Point

A state in which market supply and demand balance each other, and as a result, prices become stable.

Endowment Effect

A psychological and behavioral economics phenomenon where individuals value an owned object higher than a similar object they do not own.

Item Value

The worth or usefulness of a specific good or service, often determined by factors like utility, demand, and rarity.

Ownership

The legal right or status of having control over something, typically property or goods.