📚 Learning Guide
Consumer Utility Maximization
easy

Utility Maximization: Money spent on goods is to utility as time spent on activities is to what?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Satisfaction

B

Opportunity cost

C

Diminishing returns

D

Marginal utility

Understanding the Answer

Let's break down why this is correct

Answer

Utility maximization is all about getting the most satisfaction from what we spend our resources on, whether it's money or time. When we talk about money spent on goods leading to utility, we can think of utility as the happiness or satisfaction we gain from those goods. Similarly, when we spend time on activities, we seek to maximize our satisfaction or enjoyment from those experiences. For example, if you spend your Saturday playing video games instead of studying, you might feel happier because you enjoy gaming more than studying. Just like with money, we want to use our time in ways that give us the greatest pleasure or benefit.

Detailed Explanation

When you spend time on activities, you want to feel satisfied. Other options are incorrect because Opportunity cost is what you give up when you choose one thing over another; Diminishing returns means getting less benefit from each extra unit.

Key Concepts

Consumer Utility Maximization
Marginal Utility
Budget Constraint
Topic

Consumer Utility Maximization

Difficulty

easy level question

Cognitive Level

understand

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