In making decisions about what to consume, a person's goal is to
A) allocate her limited income among all the products she wishes to buy so that she receives the highest total utility.
B) maximize her marginal utility from the goods and services she wishes to buy using her limited income.
C) buy low-priced goods rather than high-priced goods.
D) consume as many necessities as possible and then, if there is money left over, to buy luxuries.
A
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Based on your answer above(question 23), which of the following statements best characterizes demand for organic tomatoes.
A. Demand for organic tomatoes is inelastic. B. Demand for organic tomatoes is elastic. C. Organic tomatoes are a normal good. D. Organic tomatoes are an inferior good.
The term used to describe the situation in which government spending causes interest rates to increase and private sector investment to fall is
a. negative feedback b. crowding out c. positive pressure d. transfer of burden e. investment shift