When You Hear an Ad Promising a 'Lifetime Warranty' on a Product

question 15

Multiple Choice

When you hear an ad promising a 'lifetime warranty' on a product and doubt whether or not the offer is 'for real,' you are using critical listening to evaluate the message's:

• A) Plausibility
• B) Source
• C) Argument
• D) Evidence

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Definitions:

Utility Function

A mathematical representation of how consumers rank different bundles of goods according to the level of satisfaction or utility those bundles provide.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount loaned.

Income

The financial gain (earned or unearned) accruing over a given period of time.

Utility Functions

Mathematical expressions used in economics to represent a consumer's preference ranking for various bundles of goods.