Which of the Following Is Not a Basic Assumption Underlying

question 76

Multiple Choice

Which of the following is not a basic assumption underlying the theory of consumer behavior?

• A)Consumers prefer more to less.
• B)Consumer preferences depend on the amounts of goods they consume as well as the amounts being consumed by other consumers.
• C)Goods are continuously divisible, that is, consumers can always purchase one more or one less unit of a good.
• D)Consumers have well-behaved preferences, that is, preference orderings are complete.

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Definitions:

Recognized Gain

The portion of profit that must be reported for taxation purposes when an asset is sold or disposed of for more than its purchase price.

Cash Distribution

Cash Distribution refers to the disbursement of funds, dividends, or capital to investors or business partners typically from a corporation or partnership.

Recourse Liabilities

Debts for which the borrower is personally liable, meaning the lender can pursue personal assets of the borrower if the loan is not repaid.

Cash Distribution

A payment made in cash to investors or stakeholders, often from the profits or reserves of a company or an investment fund.