We Assume That the Representative Consumer's Preferences Exhibit the Properties

question 2

Multiple Choice

We assume that the representative consumer's preferences exhibit the properties that

• A) they are convex and that more is always preferred to less.
• B) more is always preferred to less and that each consumer has one strictly favourite period of time for consumption.
• C) each consumer has one strictly favourite period of time for consumption and that current and future consumption are both normal goods.
• D) current and future consumption are both normal goods and that the consumer likes diversity in his or her consumption bundle.
• E) current and future consumption are both normal goods and that more is always preferred to less.

---

Definitions:

Financial Decision Making

The process of making choices related to investments, budgeting, and spending strategies to optimize financial goals.

Top Managers

Executives at the highest level of organizational management who are responsible for the overall direction and success of the company.

Economic Value Added

A measure of a company's financial performance that shows the net profit earned above the cost of capital.

Definition

A statement that explains the meaning of a term or a concept.