When a consumer has chosen an optimal bundle of goods, this bundle maximizes marginal utility.

The function of the financial statement, which colleges ask parents to fill out to make their children eligible for tuition scholarships, is to

A) determine cases of genuine need. B) maintain the college's eligibility for federal assistance. C) permit the college to confine its aid to students who can make most effective use of the aid. D) provide information about the demand curves of potential customers.

When there are too few or too many resources going to an economic activity

A) a public good exists. B) a market failure exists. C) consumer sovereignty exists. D) a free-rider problem exists.