The Theory of Consumer Behavior Assumes That Consumers Can Compare

question 132

Multiple Choice

The theory of consumer behavior assumes that consumers can compare and rank all possible market baskets. This assumption is called:

• A) completeness.
• B) transitivity.
• C) nonsatiation (more is preferred to less).
• D) rationality.

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Definitions:

Stimulus Generalization

This refers to the psychological phenomenon where a response that has been learned to one stimulus is evoked by other, similar stimuli.

Operant Conditioning

A training mechanism in which the degree of a behavior is controlled by the application of rewards or punishments.

Animal

A living organism that feeds on organic matter, typically having specialized sense organs and nervous system and able to respond rapidly to stimuli.

Punishment

A consequence that reduces the probability of a behavior being repeated, often by introducing a negative outcome or removing a positive stimulus.