The Consumer Chooses the Bundle of Goods That Maximizes His

question 62

Multiple Choice

The consumer chooses the bundle of goods that maximizes his utility and spends all his income.Which of the following statements is correct?

• A)The marginal utilities of all goods are equal.
• B)Expenditures on all goods are equal.
• C)The addition to utility of the last unit of the good is equal across all goods.
• D)The addition to utility of the last unit of the good per dollar is equal across all goods.

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Definitions:

Hidden Stereotypes

Unacknowledged or unconscious biases that can influence perceptions and behavior towards certain groups of people.

Resilience

The capacity to recover quickly from difficulties or to bounce back from setbacks, displaying strength and adaptability.

Patience

The capacity to accept or tolerate delay, trouble, or suffering without getting angry or upset.

Tolerance

The ability or willingness to tolerate the existence of opinions or behavior that one dislikes or disagrees with.