Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Individuals will always choose the option that maximizes total utility without considering resources.
B
Individuals adjust their consumption choices to make the best use of their limited resources.
C
Limited resources have no effect on utility maximization.
D
Utility maximization is irrelevant in economies with unlimited resources.
Understanding the Answer
Let's break down why this is correct
Answer
Utility maximization is the idea that people try to get the most satisfaction or happiness from their choices, given the resources they have. When resources are limited, such as money or time, individuals must make careful decisions about how to spend them to achieve the highest possible utility. For example, if a student has a budget of $10 for snacks, they need to decide whether to buy a large bag of chips or a few candy bars. If they choose the chips and feel satisfied with that choice, they are maximizing their utility based on their limited budget. Thus, understanding utility maximization helps people make better decisions when resources are scarce, ensuring they get the best value for what they can afford.
Detailed Explanation
People have limited resources, like money or time. Other options are incorrect because Some might think people always pick the best option without thinking about resources; This idea suggests that resources don't matter for happiness.
Key Concepts
utility maximization
Topic
Impact of Limited Resources
Difficulty
easy level question
Cognitive Level
understand
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