Alison is deciding how to spend the next hour.We ask her to rate the utility she would get from an hour of each activity.She would get utility of 4 from an hour of reading,utility of 2 from an hour of playing video games,and utility of 6 from shopping.Based on this information,economists could predict that Alison will:
A)read.
B)play video games.
C)go shopping.
D)do nothing,since none of the activities give her utility greater than 10.

Question

Quizplus · Accepted Answer

Alison would get the highest utility of 6 from shopping, so it is likely that she will choose to go shopping over reading or playing video games.

Alison Is Deciding How to Spend the Next Hour