Statement I: If a Poor Person Found a Ten-Dollar Bill

question 115

Multiple Choice

Statement I: If a poor person found a ten-dollar bill lying on the sidewalk,he would get more utility from what he could buy with it than a rich person.
Statement II: There is no answer to the question: "What is the utility of the economics course you're taking?"

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Standard Cost

A predetermined cost of manufacturing a single unit or a number of units of a product, which is used for budgetary and cost control purposes.

Favorable Variance

Occurs when actual performance is better than expected, leading to lower costs or higher revenues than planned.

Budgeted Revenue

The projected income that a business or organization expects to generate within a specific period, often used for planning and performance evaluation.

Standard Costs

Predetermined costs assigned to goods and services, used as a benchmark for evaluating actual production costs.