Which of the Following Is Not an Assumption of the Theory

question 308

Multiple Choice

Which of the following is not an assumption of the theory of consumer behavior described in this chapter?

• A)The consumer has to make purchasing decisions within a given budget constraint.
• B)The consumer experiences diminishing marginal utility from consuming goods.
• C)The consumer's tastes and preferences continually change within the period studied.
• D)The consumer aims to get maximum total utility out of a given budget.

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Definitions:

Direct Quote

In foreign exchange, a price quote that specifies the domestic currency price of one unit of foreign currency.

Indirect Quote

A currency quotation in the foreign exchange markets that expresses the amount of foreign currency required to buy or sell one unit of the domestic currency.

Forward Rate

The agreed-upon price for a financial transaction that will occur at a future date, as in currency or interest rate swaps.

Spot Rate

The current exchange rate at which a currency can be bought or sold for immediate delivery.