The key assumption that accompanies the use of numbers for measuring utility is that:
A. people make consumption decisions.
B. utility can be perfectly measured.
C. utility cannot be measured by an outside party.
D. individuals choose based on their preferences.
Answer: D. individuals choose based on their preferences.
You might also like to view...
Which of the following is not a condition of monopolistic competition?
a. firms produce a similar product b. products are differentiated c. advertising may exist d. each firm charges the same price for its output
Which of the following is NOT a valid explanation for the failure of the data to support PPP? theory?
a. Differences in price level measurements across countries b. Transportation costs c. Departures from free competition d. Trade barriers e. Differences in monetary policies across countries
Factors of production are:
A.) the laws that regulate manufacturers. B.) the technological innovations available to companies. C.) the resources used to create output. D.) the waste left over after goods are produced.
During a serious recession we would expect output to fall the most in:
What will be an ideal response?