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.

---

Definitions:

Thalamus

A brain structure that acts as a principal relay station for sensory information, directing it to appropriate areas of the brain for processing.

Cortex

The outermost layer of the brain, involved in high-level functions such as sensory perception, thought, reasoning, and memory.

Smell

The sense by which odors are perceived, involving the detection of chemical stimuli by the olfactory system.

Peripheral Nervous System

The segment of the nervous system composed of the nerves and ganglia that are located externally to the brain and spinal cord.