Economists Do Not Think It Is Possible to Compare the Relative

question 239

True/False

Economists do not think it is possible to compare the relative utility that two people get from consuming an additional unit of a particular good.

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Definitions:

Economy's Potential

The economy's potential refers to its maximum productive capacity when resources are fully employed, indicating a state where unemployment is at the natural rate and there is no demand-pull inflation.

Fiscal Policy

Policy made by the government which entails modifying how much it spends and adjusts tax rates to control and affect the economic health of a nation.

Rational Expectations School

An economic theory suggesting individuals make predictions about future economic events using all available information and past experiences.

Inflation

The speed at which the general cost level for goods and services ascends, weakening purchase potency.