If You Buy a Burger and Fries at Your Favorite

question 37

Multiple Choice

If you buy a burger and fries at your favorite fast food restaurant,

• A)then neither GDP nor consumption will be affected because you would have eaten at home had you not bought the meal at the restaurant.
• B)then GDP will be higher,but consumption spending will be unchanged.
• C)then GDP will be unchanged,but consumption spending will be higher.
• D)then both GDP and consumption spending will be higher.

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Definitions:

Utility Function

A rephrased definition: A tool in economics to quantify an individual's satisfaction from consuming different bundles of goods and services.

Price

The sum of money needed to buy a product or service.

Utility Function

A mathematical representation expressing an individual's preference ordering over a set of goods and services, showing the level of satisfaction or utility derived from various bundles of goods.

Indifference Curves

A graph representing combinations of goods among which a consumer is indifferent, used in microeconomics to analyze consumer preferences and decision-making.