Consumer Preferences

question 63

Multiple Choice

Consumer preferences:

• A)are fixed exogenously and unchanging in reality.
• B)indicate how a consumer would rank any two possible baskets of goods, taking into account her budget constraint.
• C)indicate how a consumer would rank any two possible baskets of goods, taking into account the current prices of those goods.
• D)indicate how a consumer would rank any two possible baskets of goods, assuming that the baskets were available to the consumer at no cost.

---

Definitions:

Fallacy

A logical error or misleading argument often used in reasoning or debate.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of all known living organisms.

Muddy Puddle

A shallow pool of water mixed with dirt, creating a muddy liquid, often found on the ground after rain.

Drink

The act of consuming liquids or the liquids that can be consumed.