Which of the Following Is True of Units of Utility

question 95

Multiple Choice

Which of the following is true of units of utility?

• A)Each unit is worth $1.
• B)They cannot be compared across consumers.
• C)They apply to goods but not to services.
• D)They do not exist for very wealthy individuals.
• E)They are negative for inferior goods.

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Definitions:

Aggregate Demand

Sum of all requests for goods and services within an economic system at a certain unified price level over a specified period.

Aggregate Supply Model

An economic model that represents the total supply of goods and services that firms in an economy plan on selling during a specific time period, across all price levels.

Phillips Curve

An economic theory suggesting an inverse relationship between the rate of inflation and the rate of unemployment in an economy.

Long-Run Phillips Curves

A graphical representation showing that in the long run, there is no trade-off between inflation and unemployment.