When a Consumer Spends Income So That the Ratio of Marginal

question 100

Multiple Choice

When a consumer spends income so that the ratio of marginal utilities (MUs) of all goods purchased equals the ratio of their prices, the consumer is

• A)maximizing marginal utility
• B)spending too much on all goods
• C)maximizing total utility
• D)beyond the point of diminishing marginal utility
• E)behaving in opposition to the principal of rational behavior

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Definitions:

Europeans

People originating from or associated with Europe, a continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere.

Creation Myths

Traditional or symbolic stories that describe the beginnings of the universe, the earth, and life on it, serving to explain existence and the world's nature.

Native Americans

Indigenous peoples of the Americas, including various tribes, nations, and ethnic groups, known for their rich cultures and histories.