The Assumption That Preferences Are Transitive Requires the Consumer

question 36

Multiple Choice

The assumption that preferences are transitive requires the consumer:

• A)to rank any two baskets.
• B)to say that basket is preferred to basket if basket is preferred to basket and basket is preferred to basket .
• C)to rank a basket with more units of all goods higher than a basket with fewer units of all goods.
• D)to have a diminishing marginal rate of substitution.

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Definitions:

Exercise

Physical activity that is planned, structured, and repetitive for the purpose of conditioning the body.

Physical Health

A state of well-being in which an individual is able to perform daily activities without restrictions, often associated with physical fitness and bodily functioning.

Emotional Health

A state of well-being where an individual recognizes their own abilities, can cope with the normal stresses of life, can work productively, and is able to make a contribution to their community.

Cognitive Health

A state of mental well-being where an individual has an optimal level of cognitive functioning, including memory, thinking, reasoning, and the ability to learn.