"If an Individual Is to Maximize the Utility Received from Consumption,he

question 13

Multiple Choice

"If an individual is to maximize the utility received from consumption,he or she should spend all available income...." This statement assumes

• A)that saving is impossible.
• B)that the individual is not satiated in all goods.
• C)that no goods are "inferior."
• D)that saving is impossible and that the individual is not satiated in all goods.

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Definitions:

Voting Stock

Shares that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.

Foreign Corporation

A company that is incorporated in a country outside of where it operates or conducts its business.

Inventory

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Consolidated Income Tax Return

A single income tax return filed by a parent company and its subsidiaries, considered as one entity for tax purposes.