In Order for a Consumer to Choose Between Two Different

question 128

Multiple Choice

In order for a consumer to choose between two different goods, he has to take into consideration the

• A) marginal utility of production.
• B) marginal utility divided by the price.
• C) marginal utility plus the price.
• D) total utility divided by price.

---

Definitions:

After Tax

Referring to the net amount remaining after income tax has been deducted from gross income.

Annual Return

Refers to the percentage change in an investment's value over a one-year period, including dividends and interest.

Market Rate

The current price or cost of goods, services, or financial assets in a competitive marketplace, often subject to fluctuations.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment, accounting for the time value of money.