Economists Sometimes Represent Two Goods as Having Right-Angled Indifference Curves

question 19

Multiple Choice

Economists sometimes represent two goods as having right-angled indifference curves (perfect complements) . In reality, this violates:

• A)the assumption of transitivity.
• B)the assumption of completeness.
• C)the law of diminishing returns.
• D)the "more is better" assumption.

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Definitions:

Random Variable

A variable whose values are outcomes of a random phenomenon and are subject to variability.

Standard Deviation

A measure of the dispersion or variability in a dataset, indicating how much the individual data points differ from the mean.

Weekly Income

The total amount of money earned by an individual or household in one week.

Poisson Approximation

A statistical approximation method that applies the Poisson distribution to model the number of events in fixed intervals of time or space under certain conditions.