American consumers make thousands of purchasing decisions each year. These decisions:
A) involve several trade-offs.
B) are always consistent with economic theory.
C) do not depend on the consumers' budget.
D) are called utils.
E) always maximize utility.

Question

Quizplus · Accepted Answer

Consumer decisions involve trade-offs between different options, such as quality versus price or convenience versus environmental impact. Economic theory provides a framework for understanding these decisions, but consumers may not always make choices that align perfectly with the theory. Consumer decisions are influenced by factors such as personal preferences and budget constraints, which means that they do not always maximize utility (option E). Utils (option D) are a hypothetical unit of measurement for utility, not the actual purchasing decisions made by consumers.

American Consumers Make Thousands of Purchasing Decisions Each Year