Bundle a Contains 10 Units of Good X and 5

question 208

Multiple Choice

Bundle A contains 10 units of good X and 5 units of good Y. Bundle B contains 5 units of good X and 10 units of good Y. Bundle C contains 10 units of good X and 10 units of good Y. The consumer is indifferent between bundle A and bundle B. Assume that the consumer's preferences satisfy the four properties of indifference curves. Which of the following statements is correct?

• A)The consumer must prefer bundle C to either bundle A or B.
• B)Bundle A and bundle B lie on the same indifference curve.
• C)The consumer must prefer bundle B to bundle C.
• D)Both a) and b) are correct.

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of values around the mean (average) of the set.

Raw Scores

Pure data collected from assessments or tests before any processing or normalization.

Test-retest Reliability

The consistency of a test's results when administered to the same individuals at two different points in time.

Internal Consistency

Measures the reliability of a test based on the correlations between different items on the same test; it assesses the coherence of an instrument.