If the Utility Number Associated with Consumption Bundle a Is

question 38

Multiple Choice

If the utility number associated with consumption bundle a is exactly the square root of the utility number associated with bundle b, then:

• A)bundle b offers as much utility as two of bundle a.
• B)bundle a is preferred to bundle b.
• C)bundle b is twice as desirable as a.
• D)bundle b is preferred to bundle a.

---

Definitions:

IFRS

International Financial Reporting Standards are a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for preparing financial statements.

IASB

The International Accounting Standards Board, an independent group responsible for setting and enforcing global accounting standards known as International Financial Reporting Standards (IFRS).

Accepted Accounting Principles

Standards and conventions in accounting that provide guidelines for financial reporting, often referred to as Generally Accepted Accounting Principles (GAAP).

Inflationary Economies

Economies experiencing a sustained increase in the general price level of goods and services over a period of time.