The preferences of the representative consumer over consumption and leisure are represented by use of a
A)benefit function.
B)production function.
C)dynamic function.
D)utility function.
E)preference function.

Question

Quizplus · Accepted Answer

Utility function is a commonly used representation of preferences in microeconomic theory. It maps the combination of consumption and leisure that the consumer prefers, and ranks all possible combinations based on their desirability or satisfaction level.

The Preferences of the Representative Consumer Over Consumption and Leisure