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:

Analogue Research

A methodology in which subjects are studied in artificially created conditions that approximate real-life scenarios.

Methodological Strategy

An approach or plan of action for conducting research, including the methods used for data collection and analysis.

Generalizability

The extent to which research findings can be applied to broader populations or different contexts beyond the original study setting.

Credibility

The quality of being trusted and believed in, often based on a track record of reliability and authenticity.