Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase. This is a reflection of
A) resource scarcity and the necessity of choice.
B) purposeful behavior.
C) marginal costs that exceed marginal benefits.
D) the trade-off problem that exists between competing goals.

Question

Quizplus · Accepted Answer

Consumers make purposeful choices based on their income and the level of satisfaction or benefit they can get from the goods and services they purchase. This reflects their rational behavior towards maximizing utility, which is the essence of consumer theory. Choice A refers to the problem of scarcity that forces consumers to make trade-offs between competing goods, which is also an important consideration in consumer behavior. However, it is not the best answer as it does not directly relate to the question of how consumers spend their income. Choice C is incorrect as it implies that consumers do not consider the trade-off between costs and benefits when making purchases, which is not true. Choice D is also incorrect as it is a general statement that does not provide any meaningful explanation of how consumers make spending decisions.

Consumers Spend Their Incomes to Get the Maximum Benefit or Satisfaction