In economic theory, the idea of the equimarginal principle, or consumer equilibrium, means:
a. consumers appear to be similar in their buying habits, which explains why prices are almost always in equilibrium.
b. to maximize utility, consumers allocate all of their incomes among goods so as to equate the total utility of all units of goods purchased.
c. to maximize utility, consumers must allocate their scarce incomes among only the cheapest products available.
d. to maximize utility, consumers must allocate their scarce incomes among goods so as to equate the marginal utilities per dollar of expenditure on the last unit of each good purchased.
e. the marginal utilities among luxury goods are always equal among certain high-income earners.
d
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During 2015, a country reports aggregate planned expenditures of $5 trillion and an actual real GDP of $4 trillion. During 2015,
A) inventories are less than planned. B) inventories are greater than planned. C) actual aggregate expenditures are greater than real GDP. D) actual aggregate expenditures are less than real GDP. E) inventories are unaffected.
The determinants of economic growth include all of the following except
A. technological improvement. B. growth in physical capital. C. growth in human capital. D. growth in money supply.