Your Employer Pays for Your Cell Phone

question 213

Multiple Choice

Your employer pays for your cell phone. The monetary value of this cell phone payment is

• A) included in your economic income, but not your money income.
• B) not included in your economic income, but included in your money income.
• C) not included in either economic income or money income.
• D) included in both economic and money income.

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Definitions:

Utility Function

A mathematical representation of a consumer's preference ordering over a set of goods and services. It quantifies the satisfaction or happiness derived from consuming these goods and services.

Trade

The action of buying, selling, or exchanging goods and services between people or entities.

Pareto Optimal Allocation

An allocation of resources in which it is impossible to make any individual better off without making at least one individual worse off, indicative of efficiency in resource distribution.

Utility Function

A mathematical representation in economics that defines how consumers rank different bundles of goods based on their levels of satisfaction.