The Statement "Households Maximize Utility" Means That Households

question 163

Multiple Choice

The statement "Households maximize utility" means that households:

• A)try to be as useful as possible to the economy.
• B)are only interested in maximizing their earnings.
• C)are assumed to buy useful things before they buy luxuries.
• D)are only interested in acquiring material wealth.
• E)are assumed to do what they think will most increase their satisfaction.

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Definitions:

Contractual Specifications

Detailed descriptions outlined in a contract that specify the agreed-upon standards, materials, and methods to be used.

"IOU"

An informal document acknowledging a debt.

UCC

A set of detailed legislative provisions known as the Uniform Commercial Code is designed to oversee commercial activities across the United States.

Negotiable Instruments

Legal documents guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.