If I Prefer Steak to Burritos, Burritos to Pasta and Pasta

question 84

Multiple Choice

If I prefer steak to burritos, burritos to pasta and pasta to steak:

• A)My preferences are irrational.
• B)My preferences violate the transitivity assumption.
• C)My preferences violate the "more is better assumption.
• D)I must have been exhibiting diminishing marginal utility.

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Definitions:

Rate Of Return

The upward or downward movement in an investment's value across a defined duration, detailed as a percentage of its initial expenditure.

Insurance Agent

A professional who sells, solicits, or negotiates insurance policies on behalf of an insurer.

Annuity

A financial service that ensures a regular payout to an individual, mainly intended as financial support for retirees.

EAR

Effective Annual Rate, the interest rate adjusted for compounding over a specified period, providing a true annual rate.