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' budgets.
D) are called utils.
E) always maximize utility.

Question

Quizplus · Accepted Answer

The statement mentions that these purchasing decisions involve "trade-offs", which indicates that consumers have to weigh the benefits and costs of different options before making a decision. This aligns with the concept of trade-offs in economics. The other options are incorrect: B is false because economic theory does not always predict consumer behavior accurately; C is false because consumers' budgets do play a role in their decisions; D is false because "utils" are a theoretical concept and not a term used in actual consumer behavior; and E is false because consumers do not always maximize utility, as they may not have enough information or may be influenced by other factors.

American Consumers Make Thousands of Purchasing Decisions Each Year