A rational consumer maximizes his or her:
A. wealth.
B. total utility.
C. marginal utility.
D. profit.
Answer: B
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List the characteristics of a perfectly competitive market
What will be an ideal response?
Which of the following is most likely to reduce the consumption of an exhaustible natural resource?
a. a decrease in monopoly control of the market for the resource b. government tax policies that give tax breaks to entrepreneurs who search for new reserves of the resource c. implementation of a price ceiling for the resource below its equilibrium price d. government macroeconomic policies that lower the interest rate on bonds
As the dollar depreciates, which of the following is most likely to occur?
a. More Americans will travel abroad. b. American imports will rise. c. More foreigners will visit the United States. d. American firms will increase their investments abroad.
The Fed's purchase of government securities could
A) increase loans made by banks. B) be an effective anti-inflationary policy. C) decrease the price level and have no effect on real GDP. D) decrease bank reserves.