True or False. Consumer theory requires a cardinal measure of utility.
True or False. Consumer theory requires a cardinal measure of utility.
Homework Answers
Cardinal utility analysis is the oldest theory of demand which provides an explanation of consumer's demand for a product and derives the law of demand which establishes an inverse relationship between price and quantity demanded of a product.
Answer-True
Add Answer to:
True or False. Consumer theory requires a cardinal measure of
utility.
What is the difference between ordinal utility and cardinal utility? Ordinal utility refers to A.satisfaction when...
What is the difference between ordinal utility and cardinal utility? Ordinal utility refers to A.satisfaction when consumers are rational while cardinal utility is satisfaction when consumers are not rational B. an interpersonal comparison of satisfaction, while cardinal utility is a ranking of market baskets using arbitrary numerical values. C. a ranking of market baskets in order of most to least preferred, while cardinal utility indicates how much one market basket is preferred to another. D.a ranking of market baskets based...
Which phrase best describes utility? Utility is a measure of consumer satisfaction. the contribution of a...
Which phrase best describes utility? Utility is a measure of consumer satisfaction. the contribution of a particular good or service to GDP. a measure of how useful a good or service is in acquiring income or wealth for a consumer the amount of money a consumer is willing to pay to gain a given amount of consumption. How do economists measure utility? Economists use surveys to rate the usefulness of goods and services after they are purchased. do not measure...
Classify each of the statements as true or false True False Answer Bank Marginal utility is...
Classify each of the statements as true or false True False Answer Bank Marginal utility is always positive. Numerical utility values are relatively easy to calculate. Diminishing marginal utility means that consumption of an additional unit decreases utility. Marginal utility is the extra satisfaction experienced by one additional unit of consumption Marginal utility is always negative. Utility is a measure of the satisfaction people receive from their choices If you eat a slice of pizza that gives you food poisoning....
True or False? Item budget theory says a consumer sets a predetermined level and will spend no more than 10 percent abov...
True or False? Item budget theory says a consumer sets a predetermined level and will spend no more than 10 percent above that amount. True or False? In health care, patients are being given discounts when they pay cash. This might be considered an allowance. True or False? Variable costs are those that vary with the number of people who use the service divided by the hours of operation of the service.
curve to the right. True or false? Explain. 4. The budget line shows all possible combinations...
curve to the right. True or false? Explain. 4. The budget line shows all possible combinations of two goods that yield the same level of utility to the consumer. True or false? Explain. 5. In ordinal utility, consumer equilibrium occurs at the point where: MRSxy Py/Px. (Assume good Y is on the Y axis and good X is on the X axis.) True or false? Explain. 6. Ordinal Utility (Indifference Curves & Budget Constraint Lines) has been said to have...
False te whether the statement is true or false. 60. The CPI is a measure of...
False te whether the statement is true or false. 60. The CPI is a measure of the overall cost of the goods and services bought by a typical consumer. 61. Substitution bias causes the CPI to understate the increase in the cost of living from one year to the next. 62. The introduction of new goods bias overstates increases in the cost of living in the CPI. 63. The quality of new goods bias understates the increases in the cost...
10. Which of the following is consistent with cardinal utility? A) George's utility from knowing Janice is...
10. Which of the following is consistent with cardinal utility? A) George's utility from knowing Janice is the same as his utility from knowing his mother B) Janice gets the same utility from going to the theatre as a movie C) George gets the same utility from going to a baseball game as going to a hockey game D) Janice's utility from knowing George is 2 million utils
True or False? If the adjusted measure of association is different from the crude measure for...
True or False? If the adjusted measure of association is different from the crude measure for more than 10%, confounder is present and the adjusted measure of association should be reported.
Indicate whether the following statements are True or False e)If Tom's total utility from watching one...
Indicate whether the following statements are True or False e)If Tom's total utility from watching one more minute of television increases but the increase for each additional minute is smaller tha the previous minute,he has diminishing marginal utility f)As a person consumes more and more slices of pizza, the marginal utility of each extra slice diminishes g)A consumer will maximize utility when all income is spent and the marginal utility is equal for all goods h)When Kathryn spends her entire...
Question 13 (1 point) In consumer equilibrium, which of the following is true? The marginal utility...
Question 13 (1 point) In consumer equilibrium, which of the following is true? The marginal utility from the consumption of each good is the same. The marginal utility from the consumption of each good is zero. The marginal utility from the consumption of the last dollar's worth of each good is the same. The total utility from the consumption of each good is the same.
Which phrase best describes utility? Utility is a measure of consumer satisfaction. the contribution of a particular good or service to GDP. a measure of how useful a good or service is in acquiring income or wealth for a consumer the amount of money a consumer is willing to pay to gain a given amount of consumption. How do economists measure utility? Economists use surveys to rate the usefulness of goods and services after they are purchased. do not measure...
Classify each of the statements as true or false True False Answer Bank Marginal utility is always positive. Numerical utility values are relatively easy to calculate. Diminishing marginal utility means that consumption of an additional unit decreases utility. Marginal utility is the extra satisfaction experienced by one additional unit of consumption Marginal utility is always negative. Utility is a measure of the satisfaction people receive from their choices If you eat a slice of pizza that gives you food poisoning....
curve to the right. True or false? Explain. 4. The budget line shows all possible combinations of two goods that yield the same level of utility to the consumer. True or false? Explain. 5. In ordinal utility, consumer equilibrium occurs at the point where: MRSxy Py/Px. (Assume good Y is on the Y axis and good X is on the X axis.) True or false? Explain. 6. Ordinal Utility (Indifference Curves & Budget Constraint Lines) has been said to have...
False te whether the statement is true or false. 60. The CPI is a measure of the overall cost of the goods and services bought by a typical consumer. 61. Substitution bias causes the CPI to understate the increase in the cost of living from one year to the next. 62. The introduction of new goods bias overstates increases in the cost of living in the CPI. 63. The quality of new goods bias understates the increases in the cost...
Question 13 (1 point) In consumer equilibrium, which of the following is true? The marginal utility from the consumption of each good is the same. The marginal utility from the consumption of each good is zero. The marginal utility from the consumption of the last dollar's worth of each good is the same. The total utility from the consumption of each good is the same.
Most questions answered within 3 hours.
-
Need help making this Java program:
package assignment1;
public class Fibonacci {
// Exercise 1: Fibonacci...
asked 38 minutes ago -
5) Suppose a price floor on sparkling wine is proposed by the
Health Minister of the...
asked 4 minutes ago -
how
are monotremes, cyanodonts , and synapsids related ?
asked 13 minutes ago -
Webster Corporation is preparing a master budget for the first
quarter of the year. The company...
asked 22 minutes ago -
Exercise Technology
The relationship of the technology ( Positive Effects ) to
society and the
world....
asked 15 minutes ago -
NEED THE SQL QUERIES ASAP PLEASE(LIKE 1 HOUR) THE ONES WITH ID
ARE PRIMARY KEYS OR...
asked 13 minutes ago -
1. As we are nearing the end of our class, consider how
communication currently plays a...
asked 25 minutes ago -
Classify the countries according to the sign of each countries'
current account balance in 2012.
Current...
asked 25 minutes ago -
risk perception genetically modified foods
(a) What factors seem to be most important in influencing the...
asked 29 minutes ago -
The equilibrium constant for the reaction HNO2 (aq) + H2 O ( ℓ)
↔ NO2¯ (g)...
asked 44 minutes ago -
An investor buys a European put on a share for $3.
The stock price is $42...
asked 34 minutes ago -
An ancient club is found that contains 140 g of pure carbon and
has an activity...
asked 45 minutes ago