A model of choice in economics starts by assuming that:
a. people try to minimize their losses.
b. people try to maximize their consumption.
c. people try to minimize their costs.
d. people try to maximize their utility.
D
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An asset becomes more liquid and hence more money-like
A) as its value relative to other goods approaches zero. B) as its value relative to other goods becomes more uncertain and unpredictable. C) as the cost of exchanging it for other goods approaches zero. D) when it is demanded for its own intrinsic value.
According to a utilitarian, total social utility will be maximized when marginal dollars are distributed to the people with the
a. lowest marginal utility of income. b. highest marginal utility of income. c. highest total utility from their income. d. most productive labor resources.