Many Successful Professionals,e

question 82

Multiple Choice

Many successful professionals,e.g. ,attorneys and accountants,wear very expensive clothing.This is because

• A)they wish to differentiate themselves from other successful professionals.
• B)expensive clothes are a costly-to-fake signal of wealth.
• C)they have exhausted their spending on what people need to live.
• D)expensive clothes are a costly-to-fake signal of ability.

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Definitions:

Indifference Curve

A graphical representation in microeconomic theory of all combinations of goods that provide a consumer with the same level of satisfaction, indicating their preferences.

Indifference Curve

A graphical representation showing different combinations of two goods that give a consumer equal satisfaction and utility.

Marginal Utility

The additional satisfaction or usefulness gained from consuming one more unit of a good or service.

Positive Slopes

Characteristics of a line or curve on a graph indicating that values of the variable on the y-axis increase as the values of the variable on the x-axis increase.