Consumers maximize total utility within their budget constraint by
A) buying the cheapest goods they can find.
B) buying whatever they like the best.
C) buying the goods with the largest marginal utility per dollar spent.
D) spending the same dollar amount for each good.
Answer: C
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All of the following are true regarding the Federal Trade Commission's (FTC) Bureau of Consumer Protection except which one?
A) It relies on consumers and competitors to report false advertising. B) It is a federal agency. C) It generally tries to convince companies to cease or alter false advertising. D) It cannot bring a civil case against a firm's managers for false advertising.
One problem associated with intellectual property is that
a. only one person can use it at a time b. the patent system reduces incentives to create new intellectual property c. the cost of producing it usually exceeds the benefit d. encryption software creates monopoly power e. the original producer has difficulty preventing non-paying beneficiaries from consuming the property
Explain the? Fed's policy tools and briefly describe how each works. The Fed uses its policy tools to? _______. 2. By increasing the required reserve? ratio, the Fed forces banks to hold a? _______ quantity of monetary base and the interest rate? _______.
1. A. influence the interest rate and regulate the amount of money circulating in the United States by adjusting the reserves of the banking system B. keep the government budget debt under? $20 trillion by adjusting loans to Congress C. influence the exchange rate and the? country's trade balance by adjusting the interest rate D. regulate the amount of money circulating in the United States by printing enough money each year for the purchase of consumer goods and services 2. A. larger; falls B. larger; rises C. smaller; rises D. smaller; falls
The international poverty line at $1.90 a day at purchasing power parity means that in each country the poverty line is the amount that will allow you to buy a basket of goods equivalent to what $1.90 would buy:
A. in the United States. B. in the average economy of all the countries that use the index. C. in the richest of the countries that uses the index. D. in the poorest of the countries that uses the index.