Multiple Choice
The term utility maximization means that
A) individuals consume to gain as much utility as possible, given the limits of the budget constraint.
B) total utility does not change with a change in income.
C) once utility is at its maximum, leftover income can be saved.
D) individuals consume the maximum amount of a good that the budget constraint makes possible.
E) individuals maximize their usefulness to society.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Exhibit 5A-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6906/.jpg" alt="Exhibit 5A-1
Q2: The height of the demand curve is
Q3: A point on the budget constraint represents
Q4: The slope of a budget line for
Q5: Which of the following statements about market
Q7: Like marginal utility, marginal benefit<br>A)measures satisfaction for
Q8: Consumer surplus is<br>A)equivalent to value in use.<br>B)equivalent
Q9: To maximize utility, the amount that a
Q10: A change in the price of a
Q11: The budget constraint<br>A)is the combined price of