Faced with Two Goods to Buy,diamonds and Silver,a Utility-Maximizing Individual

question 1

Multiple Choice

Faced with two goods to buy,diamonds and silver,a utility-maximizing individual will buy according to which rule?

• A)The price of diamonds equals the price of silver.
• B)The marginal utility of diamonds equals the marginal utility of silver.
• C)The price of diamonds divided by the marginal utility of silver equals the price of silver divided by the marginal utility of diamonds.
• D)The marginal utility of diamonds divided by the price of diamonds equals the marginal utility of silver divided by the price of silver.

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Definitions:

Fair Treatment

The practice of treating all individuals equally, without bias or discrimination, in various contexts.

Equitable Treatment

Equitable treatment involves fair and unbiased interaction with individuals, ensuring justice and equality in opportunity, rights, and access.

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, involving the realization of an individual's potential, self-fulfillment, seeking personal growth and peak experiences.

Salaries

Regular payments made by employers to employees for work performed over a specified period, typically monthly or biweekly.