A Consumer's Spending Is Restricted Because Of

question 90

Multiple Choice

A consumer's spending is restricted because of:

• A)marginal utility.
• B)total utility.
• C)his or her budget constraint.
• D)utility maximization.

---

Definitions:

Capital Rationing

Capital rationing is a strategy where companies limit or restrict their capital investments due to budgetary constraints.

Total NPV

The sum of the net present values of a series of cash flows, which can indicate the overall net benefit of a series of potential investments or projects.

Maximize

To increase a particular outcome or variable to its highest possible value within a given set of constraints.

NPV

Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.