The Nonsatiation Assumption Says That Given Any Two Consumption Bundles

question 98

Multiple Choice

The nonsatiation assumption says that given any two consumption bundles, if bundle 1 has more of one good and does not contain less of any other good then:

• A)the individual is indifferent between bundle 1 and all other bundles.
• B)bundle 1 is never preferred to others.
• C)all other bundles are preferred to bundle 1.
• D)bundle 1 is preferred to other bundles.

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Definitions:

Wage Rate

The amount of money paid to workers per unit of time, often hourly or monthly, for their labor.

MRP

Marginal Revenue Product, the additional revenue generated from using one more unit of a factor of production.

Rent

Payment made periodically by a tenant to a landlord in exchange for the use of land, a building, or another property.

MRP

The additional revenue produced by increasing one unit of a production input, emphasizing the productivity aspect in revenue generation.