The Assumption That Preferences Are Complete

question 50

Multiple Choice

The assumption that preferences are complete:

• A) means that a consumer will spend her entire income.
• B) is unnecessary, as long as transitivity is assumed.
• C) recognizes that there may be pairs of market baskets that cannot be compared.
• D) means that the consumer can compare any two market baskets of goods and determine that either one is preferred to the other or that she is indifferent between them.

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Definitions:

Cultural Circumstances

The societal, economic, and historical conditions that influence the beliefs, behaviors, and practices of individuals or communities.

REM Sleep

Rapid eye movement sleep, in which an individual’s brain wave activity is remarkably similar to that of the waking state but the individual is asleep.

Experience-expectant

A term related to brain development, referring to the process by which the brain evolves in response to general environmental stimuli that are expected to occur in all typical environments.

Sensory Deprivation

A condition in which one or more of the senses is diminished or eliminated, often for therapeutic or experimental purposes.