Multiple Choice
A utility function
A) needs to measure the absolute level of happiness.
B) needs to measure relative amounts of happiness for a single individual.
C) helps compare the relative happiness of two separate consumers.
D) is most useful if it can be influenced by others.
E) measures relative happiness and income of consumers.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: The marginal product of a factor of
Q15: A consumer's real disposable income equals<br>A) wage
Q16: A consumer maximizes satisfaction at the point
Q17: The marginal rate of substitution<br>A) can be
Q19: The shape of the indifference curve depends
Q20: With consumption on the vertical axis
Q21: The principle that consumers and firms optimize<br>A)
Q22: An increase in total factor productivity shifts
Q23: Perfect substitutes will have<br>A) straight line indifference
Q46: As the quantity of labour increases, the