Which of the Following Statements Does Not Invoke Interpersonal Utility

question 63

Multiple Choice

Which of the following statements does not invoke interpersonal utility comparisons?

• A)The total utility a millionaire derives from $100 is less than the total utility a poor person derives from $100.
• B)The marginal utility a millionaire derives from the one-millionth dollar is less than the marginal utility a poor person derives from the one-hundredth dollar.
• C)For both the millionaire and the pauper, the marginal utility they derive from the one-thousandth dollar is less than the marginal utility they derive from the five-hundredth dollar.
• D)The total utility a millionaire derives from $10,000 is more than the total utility a poor person derives from $10,000.

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Definitions:

Unrealized Changes

Refers to changes in the value of assets or liabilities that have occurred but have not been realized through a transaction.

Earnings Per Share

A measure of a company's profitability calculated by dividing net income by the number of outstanding shares.

Comprehensive Income

This is a measure of all changes in equity of a company that result from recognized transactions and other economic events of the period other than those resulting from investments by and distributions to owners.

Accrual-Based Sales Revenue

Revenue recognized when earned, regardless of when the payment is received, following the accrual basis of accounting.