Which Statement Is True

question 52

Multiple Choice

Which statement is true?

• A)The utility of a satellite dish is greater than the utility of a cell phone.
• B)A $24 ticket to a Detroit Tigers baseball game provides the ticket-holder with more utility than a $75 ticket to see a Detroit Red Wings hockey game.
• C)A half-hour swimming lesson would provide twelve different people with exactly the same utility.
• D)No one would pay for a service that provided him with no utility.

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Definitions:

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium outcome is not achievable or not achieved.

University

An institution of higher education and research which awards academic degrees in various academic disciplines and provides both undergraduate education and postgraduate education.

Tax

Compulsory payments made to the government, imposed on earnings from employment and profits from businesses, or included in the price of certain goods, services, and dealings.

Arthur Laffer

An economist known for the Laffer Curve, which postulates a relationship between tax rates and tax revenue, suggesting there exists an optimal tax rate for maximizing revenue.