Which of the following statements is true about individuals and utility?
A) Individuals seek to maximize utility.
B) Individuals seek to maximize their income, not utility.
C) Individuals will either minimize or maximize utility depending on the situation.
D) Individuals rarely try to maximize their utility.

Question

Quizplus · Accepted Answer

The concept of utility refers to the satisfaction or enjoyment that individuals receive from consuming goods and services. Economic theory assumes that individuals seek to maximize their utility, or in other words, they make decisions that will increase their satisfaction or well-being. Therefore, statement A is true. Statements B, C, and D are incorrect as they do not align with economic theory and empirical evidence regarding individual decision-making.

Which of the Following Statements Is True About Individuals and Utility