A consumer who has a limited budget will maximize utility or satisfaction when the:
A. ratios of the marginal utility of each product purchased divided by its price are equal.
B. total utility derived from each product purchased is the same.
C. marginal utility of each product purchased is the same.
D. price of each product purchased is the same.
Answer: A
You might also like to view...
A system of property rights
A) encourages economic growth by creating incentives to invest in capital and to be innovative. B) discourages economic growth by discouraging the development of new ideas and ways of doing things. C) reduces the efficiency of government, which reduces the growth rate of the economy over time. D) encourages investment but discourages entrepreneurial activity, so the effect on economic growth is uncertain.
What factor probably contributes most to economic growth?
A) Money B) Political influence C) Foreign aid and investment D) The exploitation of poor countries by rich countries E) Productive knowledge