Consumer Preferences

question 36

Short Answer

Consumer Preferences. Indicate whether each of the following statements is true or false. Explain why.
A. According to the more is better principle, all goods and services are desirable in the sense of being able to satisfy consumer wants.
B. When preferences are complete, consumers know how much a given good or service is preferred compared to another good or service.
C. The nonsatiation principle dictates that each incremental unit of consumption causes marginal utility to rise.
D. If two services provide the same amount of satisfaction or utility, the consumer is said to display indifference between the two.
E. The consumer's understanding of cardinal utility makes possible a rank ordering of preferred goods and services.

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Definitions:

Operant Conditioning Techniques

Behavioral training methods based on the principle of reinforcing desired behaviors and discouraging undesired ones.

Infant Memories

This term relates to the recollections or memories that originate from the infancy period of a human's life, although these are usually not consciously accessible in later years.

Retrieval Cues

Stimuli or signals that help in the recall of memories stored in the brain.

Operant Conditioning

A learning process through which behavior is shaped by reinforcement or punishment.