Indirect utility functions are homogeneous of degree 1 in income.
Answer the following statement true (T) or false (F)
False
Rationale: This would imply that we can always increase income by a factor k and expect the consumer to get k times as much utility. But that would depend on how we measure utility, and there are lots of ways to measure utility that will make this not true for any set of preferences.
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The above figure shows the cost curves for a competitive firm. The firm will shut down in the short run if price falls below
A) $5. B) $10. C) $11. D) $15.
The marginal tax rate is
A. the total taxes paid as a percentage of total income. B. the average tax rate paid by both individuals and corporations. C. the sum of all individual tax rates. D. the increase in taxes as a percentage of the increase in income.