A utility function is a mathematical formula that assigns to each consumption bundle a numeric value that represents the:
A. opportunity cost of consuming the bundle.
B. consumer's relative well-being from consuming the bundle.
C. price the consumer would pay for the bundle.
D. rates of substitution of the goods in the bundle.
B. consumer's relative well-being from consuming the bundle.
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Industrial production, total sales, nonfarm employment, and after-tax household income are examples of ________ indicators of economic activity.
A. coincident B. real C. preceding D. lagged
An event that changes the supply of any factor of production can alter the earnings of all the factors
a. True b. False Indicate whether the statement is true or false
Suppose that the price level is 5, money supply is 10 trillion dollars, velocity of money is 4. What is the value of real GDP?
A. $2 trillion B. 8 trillion C. 6 Trillion D. 10.25 trillion E. None
The velocity of circulation is the
A. speed at which the multiplier takes effect. B. speed at which money circulates. C. speed at which tax cuts get spent. D. rate at which money creation takes place.