Indifference Theory Is Based on the Assumption That

question 77

Multiple Choice

Indifference theory is based on the assumption that

• A)consumers are not able to rank consumption bundles in order of preference.
• B)consumers can always say which of two consumption bundles they prefer without having to say by how much they prefer it.
• C)the consumer has equated the marginal utilities of all products,and is therefore indifferent between consumption bundles.
• D)the consumer is able to quantify the difference in total utility received from two different consumption bundles.
• E)the consumer receives the same utility and is therefore indifferent between any two consumption bundles.

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Definitions:

World Population

The total number of humans currently living on earth, a figure that is continuously changing due to births and deaths.

Supply Chains

Networks of individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and eventually to the end user.

Comparative Advantage

An economic theory that refers to the ability of any given economic actor to produce goods and services at a lower opportunity cost than other economic actors.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors, using fewer resources.