We Assume That the Representative Consumer's Preferences Exhibit the Properties

question 16

Multiple Choice

We assume that the representative consumer's preferences exhibit the properties that

• A) they are convex and that more is always preferred to less.
• B) more is always preferred to less and that each consumer has one strictly favorite period of time for consumption.
• C) each consumer has one strictly favorite period of time for consumption and that current and future consumption are both normal goods.
• D) current and future consumption are both normal goods and that the consumer likes diversity in his or her consumption bundle.
• E) current and future consumption are both normal goods and that more is always preferred to less.

---

Definitions:

Heteroscedasticity

A characteristic of a set of data where the variance of the error term is not constant across all levels of the independent variables, which can affect statistical analyses.

Regression Line

A line of best fit through a set of data points in statistical modeling, showing the relationship between the independent and dependent variables.

Dependent Variable

The variable in an experiment or study that is expected to change in response to changes in the independent variable.