Question

In: Economics

Determine whether each of the following statements is true or false. You are also required to...

Determine whether each of the following statements is true or false. You are also required to explain why, the answer is true or false, in other words provide the justification for saying so.

a. According to the theory of consumer behavior, more is always better.

b. Consumer must understand how much one product is preferred over another in order to rank order consumption alternatives.

c. Marginal Utility measures the consumer’s overall level of satisfaction derived from consumption activities.

Solutions

Expert Solution

Answer)

a) According to the theory of consumer behavior, more is always better. The Statement is True. All consumers want to derive maximum utility from the goods and want as much units of goods as they can buy. So, this statement is complete and correct.

b) Consumer must understand how much one product is preferred over another in order to rank order consumption alternatives. This statement is True. The consumers rank each baskets of goods in order of their preferences and buy that basket of goods from which they derive maximum utility. So, this statement is correct.

c) Marginal Utility measures the consumer’s overall level of satisfaction derived from consumption activities. This statement is False. Marginal Utility is defined as the additional utility derived from consumption of an additional unit of a good. It is not the overall satisfaction from consumption activities. So, this statement is incorrect.

If you have any doubts please comment...


Related Solutions

For each of the following statements, determine whether the statement is true or false. If you...
For each of the following statements, determine whether the statement is true or false. If you say the statement is true, explain why and if you say it is false, give an example to illustrate. (a) If {u, v} is a linearly independent set in a vector space V, then the set {2u + 3v, u + v} is also a linear set independent of V. (b) Let A and B be two square matrices of the same format. Then...
True or false: For each of the statements, determine whether it is true or false, then...
True or false: For each of the statements, determine whether it is true or false, then explain in a few sentences why that is the answer. Note: no marks will be given for answers that do not include an explanation. 1. If money stops being a reliable store of value, then it ceases to be useful as a medium of exchange. 2. The gold standard is an improvement over actual gold coinage because it allows the government/central bank to control...
Determine whether each of the following statements is true or false. If the statement is false,...
Determine whether each of the following statements is true or false. If the statement is false, modify and rewrite it so that it is a true statement. a. When a molecule has two, degenerate, “infrared active”, vibrational modes, the two vibrational modes will show absorptions at different frequencies in the infrared spectrum. b. For a given substance, strong intermolecular forces between molecules of the substance can cause peak broadening of some of the absorptions in the infrared spectrum of the...
True or False questions. Determine whether or not each of the following statements is true. If...
True or False questions. Determine whether or not each of the following statements is true. If a statement is true, prove it. If the statement is false, provide a counterexample and explain how it constitutes a counterexample. Diagrams can be useful in explaining such things. a) If the electric potential in a certain region of space is constant, then the charge enclosed by any closed surface completely contained within that region is zero. b) A sphere of radius R is...
True or False questions. Determine whether or not each of the following statements is true. If...
True or False questions. Determine whether or not each of the following statements is true. If a statement is true, prove it. If the statement is false, provide a counterexample and explain how it constitutes a counterexample. Diagrams can be useful in explaining such things. 1. A sphere of radius R is centered at the origin. A total charge Q is uniformly distributed throughout its interior. A ball of radius R/2 centered at the the origin is carved out and...
PROBLEM #1:TRUE of FALSE For each of the following statements, determine whether it is true or...
PROBLEM #1:TRUE of FALSE For each of the following statements, determine whether it is true or false. Label “T” if it is true, otherwise label “F”. 1-a. If two distributions have the same moment-generating function, then they are identical at almost all points. For a random variable X, if its moments of order k (k > 0) exist, then its moment generating function is continuously differentiable up to order k. 1-b. LetXbearandomvariablewiththeprobabilitydensityfunctionp(x)=ca/(a+x2) where c, a are positive constants and a...
Determine whether each of the following statements is True or False. If True, write a proof....
Determine whether each of the following statements is True or False. If True, write a proof. If False, exhibit a counterexample. 1) If m, n are arbitrary positive integers, then any system of form x ≡ a (mod m) x ≡ b (mod n) has a solution. 2) If m, n are arbitrary positive integers and the system x ≡ a (mod m) x ≡ b (mod n)     has a solution, then the solution is unique modulo mn. Modern Abstract...
Determine whether each of the following statements is True or False. If True, write a proof....
Determine whether each of the following statements is True or False. If True, write a proof. If False, exhibit a counterexample. 1) If m, n are arbitrary positive integers, then any system of form x ≡ a (mod m) x ≡ b (mod n) has a solution. 2) If m, n are arbitrary positive integers and the system x ≡ a (mod m) x ≡ b (mod n) has a solution, then the solution is unique modulo mn. Modern Abstract...
For each of the statements in Section A, determine whether it is true or false, then...
For each of the statements in Section A, determine whether it is true or false, then explain in a few sentences why that is the answer. Note: no marks will be given for answers that do not include an explanation. 1. If money stops being a reliable store of value, then it ceases to be useful as a medium of exchange. 2. The gold standard is an improvement over actual gold coinage because it allows the government/central bank to control...
For each of the following statements, determine whether it is true or false and justify your...
For each of the following statements, determine whether it is true or false and justify your answer. a. Every function f : [0, 1] ~ lR has a maximum. b. Every continuous function f :[a, b] ~ lR has a minimum. c. Every continuous function f : (0, 1) ~ lR has a maximum. d. Every continuous function f : (0, 1) ~ lR has a bounded image. e. If the image of the continuous function f: (0, 1) ~...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT