Most People Would Prefer to Drive a Luxury Car That

question 272

Multiple Choice

Most people would prefer to drive a luxury car that has all the options, but more people buy less expensive cars even though they could afford the luxury car because

• A)car buyers are irrational.
• B)the total utility of less expensive cars is greater than that of luxury cars.
• C)the marginal utility per dollar spent on the less expensive car is higher than that spent on luxury cars.
• D)luxury cars cost a lot more than non-luxury cars.

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Definitions:

Possession

The state or fact of owning or having control over something.

Rights

Entitlements or freedoms that are guaranteed by law, ethics, or customs, allowing individuals to perform or not perform certain actions.

Terminal Disease

A progressive disease that has no cure or feasible treatment and is reasonably expected to result in the death of the patient.

Title

A legal term referring to the ownership of property, implying a right to the use and possession of that property.