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

Question

Quizplus · Accepted Answer

Preferences over consumption and leisure are represented by a utility function, which measures the satisfaction or well-being that the representative consumer derives from different combinations of consumption and leisure.

The Preferences of the Representative Consumer Over Consumption and Leisure