The concept of utility maximization:
A. can be used broadly to think about choices made motivated by satisfaction, envy, status, or kindness.
B. assumes each individual seeks to increase his own personal satisfaction regardless of others.
C. is solely used to measure an individual's satisfaction with his consumption choices.
D. None of these is true.
Answer: A
You might also like to view...
Suppose a drop in prices in the stock market makes people feel less financially secure. This would cause __________ the economy's AD curve
A) movement down along B) movement up along C) a rightward shift of D) a leftward shift of
One advantage of a sole proprietorship over a corporation is:
A. greater ability to obtain funds. B. ease of formation. C. limited liability. D. the ability to share work and risks.
Which of the following is true of a perfectly competitive firm?
A. The firm is a price maker. B. If the firm wishes to maximize profits it will produce an output level in which marginal revenue exceeds marginal cost. C. The firm will not earn an economic profit in the long run. D. The firm's short-run supply curve is its MC curve below its AVC curve.
When voting mechanisms substitute for the market mechanism in allocating resources, we are relying on
A. Cost-benefit analysis. B. Public choice theory. C. Opportunity cost analysis. D. Ballot box economics.