Utility maximization means that people try to allocate their ______ to maximize their ___________.
A)utility,spending
B)resources,satisfaction
C)time,work
D)limited resource,desires

Question

Quizplus · Accepted Answer

Utility is a measure of satisfaction or happiness that individuals derive from consuming goods and services. Resources are the inputs that individuals use to produce goods and services. Therefore, it makes more sense to say that people try to allocate their resources to maximize their satisfaction or utility, rather than their spending. Time and work are types of resources, but they are not the only ones. Finally, option D is not wrong, but it is less specific than option B.

Utility Maximization Means That People Try to Allocate Their ______