A Consumer Will Consume Such That Price Equals Marginal Benefit

question 30

Multiple Choice

A consumer will consume such that price equals marginal benefit for every good consumed because

• A)income is maximized.
• B)of the substitution effect.
• C)utility is maximized.
• D)price is maximized.
• E)wealth is maximized.

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Definitions:

Articles of Confederation

The Articles of Confederation were the first governing document of the United States, providing a framework for national government before being replaced by the Constitution.

Commander in Chief

The role ascribed to the president of the United States who serves as the supreme commander of the military forces of the country and of the state National Guard units when they are called into active federal service.

State Militias

Military forces maintained by individual states for defense and emergency purposes, distinguishable from the federal armed forces.

Annapolis Convention

A meeting held in 1786 to discuss the commercial problems besetting the United States under the Articles of Confederation, paving the way for the Constitutional Convention of 1787.