In Economic Utility Analysis, Consumer Tastes and Preferences Are Assumed

question 295

Multiple Choice

In economic utility analysis, consumer tastes and preferences are assumed

• A) to be determined by income.
• B) to be influenced by the prices of goods.
• C) given and stable for an individual.
• D) given but rapidly changeable.

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Definitions:

Competitive Employer

A firm that operates in a competitive labor market, setting wages based on supply and demand rather than having the power to influence market conditions.

Wage Rate

The amount of money paid to an employee per unit of time or per task performed, often expressed as an hourly or piece rate.

Total Product

The overall quantity of output that a firm produces, usually within a given period.

Farmer

An individual involved in agricultural activities aimed at producing food, feed, fiber, and other goods by the systematic raising of domesticated plants and animals.