A Consumer's Preferences Provide a

question 59

Multiple Choice

A consumer's preferences provide a

• A) ranking of the set of bundles that happen to fall on indifference curves.
• B) relative ranking of bundles that provide more of all goods.
• C) framework for evaluating market equilibriums.
• D) complete ranking of all possible consumption bundles.

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Definitions:

Directional

Pertains to hypotheses or tests that specify the expected direction of the relationship or difference between variables, as opposed to non-directional or two-tailed tests.

Non-directional

A hypothesis that does not specify a direction of difference or association between two variables.

Standard Error

A measure of the statistical accuracy of an estimate, indicating how much the sample mean is expected to vary from the true population mean.

Mean

The average of a set of numbers, calculated by dividing the sum of all values by the count of values, and used as a measure of central tendency.