The fact that most consumers are unable to describe their preferences in terms of a utility function implies that not all consumer preferences can be represented with utility functions
Indicate whether the statement is true or false
False. Utility functions are used to represent the order of rankings an individual has, but this does not imply that consumers are aware of such a function when making their choices.
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A U.S. company is attempting to cut costs by shifting some of its services to Thailand. This process of shifting production of products or services overseas to cut costs often results in
A) lower production quantities of those products or services. B) lower consumer prices on those products or services. C) greater potential for market failure for those products and services. D) greater economic uncertainty in the market for those products and services.
The marginal propensity to save (MPS) is
A) the rate at which real savings changes over time. B) the percentage of real disposable income saved. C) the difference between the amounts of real disposable income consumed and saved. D) the percentage of an additional dollar of real disposable income that will go toward additional real savings.