Question: determine whether each of the following statements is true or...
Determine whether each of the following statements is TRUE or FALSE and write a short explanation for your answer.
Assume there are two goods in the world, apples, and oranges. If Adam has a utility of 5 for apples and 10 for oranges, while Ben has a utility of 10 for apples and 20 for oranges.
- We can say that Adam enjoys apples more than oranges.
- We can say that Ben enjoys oranges more than apples.
- We can say that Ben enjoys apples more than Adam does.
- We can say that Ben enjoys oranges more than Adam does.
- Since the utility of Ben is just 2 times the utility of Adam, the two utilities represent the same preference.