The Below Table Shows the Average Utility (In Utils) Obtained

question 48

Multiple Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-In economic theory, the idea of the equimarginal principle, or consumer equilibrium, means:

• A)consumers appear to be similar in their buying habits, which explains why prices are almost always in equilibrium.
• B)to maximize utility, consumers allocate all of their incomes among goods so as to equate the total utility of all units of goods purchased.
• C)to maximize utility, consumers must allocate their scarce incomes among only the cheapest products available.
• D)to maximize utility, consumers must allocate their scarce incomes among goods so as to equate the marginal utilities per dollar of expenditure on the last unit of each good purchased.
• E)the marginal utilities among luxury goods are always equal among certain high-income earners.

---

Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values in a data set are.

Normal Distribution

A continuous probability distribution that is symmetrical around the mean, showing that data close to the mean are more frequent in occurrence than data far from the mean.

T Statistic

The t statistic is a value used in statistical analysis to determine the significance of the difference between two sample means, relative to the sample variability.

Preliminary Analysis

An initial examination of data to check for possible errors, understand basic trends and assumptions, and determine the most appropriate statistical tests.