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What does consumer theory suggest about consumption decisions?
What does consumer theory suggest about consumption decisions?
- Consumers make decisions based on minimizing their costs
- Consumers make decisions randomly
- Consumers make decisions based on peer influence
- Consumers make decisions based on maximizing their satisfaction (correct)
What do consumption bundles represent?
What do consumption bundles represent?
- Different combinations of goods and services (correct)
- Different pricing strategies
- Different levels of utility
- Different types of consumers
Which term refers to an individual's pleasure, happiness, or satisfaction?
Which term refers to an individual's pleasure, happiness, or satisfaction?
- Marginal utility
- Consumer behavior
- Utility (correct)
- Total utility
What is the total utility?
What is the total utility?
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According to consumer theory, why do individuals make consumption decisions?
According to consumer theory, why do individuals make consumption decisions?
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What does an indifference curve show?
What does an indifference curve show?
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What is the purpose of an indifference curve in consumer theory?
What is the purpose of an indifference curve in consumer theory?
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What does the law of diminishing marginal utility state?
What does the law of diminishing marginal utility state?
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What is the unit of measurement for cardinal values in consumer theory?
What is the unit of measurement for cardinal values in consumer theory?
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What is the difference between total utility and marginal utility?
What is the difference between total utility and marginal utility?
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