The Table Given Below Reports the Total Utility Derived by an Individual

question 49

Multiple Choice

The table given below reports the total utility derived by an individual from the consumption of different units of goods A, B, and C.Table 7.4

-A consumer is in equilibrium when:

• A)his or her marginal utility derived from each good is maximized.
• B)each dollar spent on each item provides more and more satisfaction.
• C)each dollar spent on each item provides less and less satisfaction.
• D)the last dollar spent on each item provides the same additional satisfaction as that dollar would if spent on any other item.
• E)his or her average utility for each item is the same.

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Definitions:

National Saving

The total saving of a country, composed of the savings accumulated by both the private sector and the government, available for investment.

Aggregate Demand

A complete tally of the demand for goods and services in an economy, at an agreed upon price level during a precise time period.

National Defense

Government activities and infrastructure aimed at protecting a country from threats and maintaining its security.

Federal Outlays

Refers to the total amount of money the federal government spends in a fiscal year, including spending on services, subsidies, and interest on debt.