Home

What is the correct answer?

4

If two households have identical preferences but different incomes then:

A. They must consume the same amounts of all goods

B. The wealthier one will have lower marginal utility for most goods

C. The wealthier one will have higher marginal utility for most goods

D. They will enjoy the same level of utility

Correct Answer :

B. The wealthier one will have lower marginal utility for most goods


Related Questions

An optimum level of a firms output is: Selling costs are incurred under monopolistic competition to: Each firm in cournot model assumes that its competitor will: Capital and Development Planning is the work of: Change in demand (rise and fall of demand) is: The concept of industry in monopolistic competition has been replaced… In general, most of the production functions measure: The firm is said to be in equilibrium when the difference between revenue… In sweezy model (kinked demand curve model), the role of MC curve: A firms profit is equal to: The kink demand curve faced by an oligopolist is based on the assumption… The slope of budget line shows the price ratios of: Which one of the following has been the most influential work of F.H.Knight? Quantity demanded or supplied is measured in: With firms having cost differences under perfect competition, a firm,… When marginal costs curve cuts average costs curve, average costs are: An indifference curve normally slopes downward from: According to Robbins, economics is a: The marshallian indirect utility function in the form of equation is: Which of the following is not a feature of isoproduct curves? In finding equilibrium position of a profitmaximizing firm, which technique… The number of firms in monopolistic competition normally range between: A monopolist will fix the equilibrium output of his product where the… Increasing returns imply: Elasticity of demand is equal to unity while marginal revenue is: Under monopolistic competition, in long-run there is: Utility is: Cross-elasticity of demand or cross-price elasticity between two complements… In case of monopoly, TR curve rises at a: Government planners play a central role in allocating resources: