Goods Can Be Defined in Terms of Their Physical Attributes

question 147

True/False

Goods can be defined in terms of their physical attributes, but services cannot because they are intangible.

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Definitions:

Real Income

The income of an individual or group after adjusting for inflation, reflecting the actual purchasing power of the income.

Total Utility

The total satisfaction a consumer receives from consuming a particular quantity of a good or service.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase with a given budget at specific prices.

Purchase More

The action of buying an increased quantity of goods or services than previously acquired.