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

question 28

Multiple Choice

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

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

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Definitions:

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A sweeping economic transformation in the early 19th century United States characterized by rapid advancements in transportation, commercialization, and industrialization.

Innovations

refer to new ideas, methods, or devices that bring improvements or changes; the act or process of introducing new ideas, devices, or methods.

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