Home › AP Microeconomics › Economics › Consumer Choices › In economic terms, consumers are described as tr…
In economic terms, consumers are described as trying to maximise their total:
AWorking
BUtility
CIncome
DSavings
Answer & Solution
Correct answer: B. Utility
1. Consumers are modelled as pursuing one objective.
2. Consumers make choices within certain budget constraints.
3. In economic terms they are trying to maximize total utility.
4. Total utility is another word for satisfaction.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 6 'Consumer Choices'_
Related questions
A price rise for a normal good makes both effects push consumption of that good in which dDiminishing marginal utility means the total utility from extra units continues to rise buConsumer equilibrium is found by comparing across goods the marginal utility:The negative slope of a budget constraint reflects that buying more of one good means:A budget constraint line with a rise of minus 8 over a run of 4 has a slope of:If overnight stays is an inferior good, the consumer instead makes a choice like:With a new budget constraint, a consumer chooses point N if both goods are:Under the income effect, reduced buying power leads to buying less of a good when the good