Neema has an hour of free time she can spend doing one of three activities. Spending the hour reading would give her a utility of 4, playing video games would give her a utility of 2, and jogging would give her a utility of 6. Based on this information, economists could predict that Neema will:
A)read.
B)play video games.
C)go jogging.
D)do nothing, since no activity gives a utility greater than 10.

Question

Quizplus · Accepted Answer

Economists predict that individuals will choose the option that maximizes their utility. In this case, jogging gives Neema the highest utility of 6, so it is predicted that she will choose to go jogging.

Neema Has an Hour of Free Time She Can Spend