The Assumption That Preferences Are Complete Requires the Consumer

question 4

Multiple Choice

The assumption that preferences are complete requires the consumer:

• A)to rank any two baskets.
• B)to say that basket C is preferred to basket A if basket B is preferred to basket A and basket C is preferred to basket B.
• C)to rank a basket with more units of all goods higher than a basket with fewer units of all goods.
• D)to have a diminishing marginal rate of substitution.

Identify the legal consequences of non-disclosure and silence in the context of fiduciary duties or special relationships.

Discern the significance of arm's length transactions and how they relate to contract obligations and fairness.

Understand the concept of scienter and its importance in establishing fraud.

Differentiate between mistakes in contract terms and how they affect contract enforceability.

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Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety through gradual exposure to the feared object or situation.

Operant Conditioning

A training procedure by which behavior intensity is changed through reinforcement or punishment.

Modeling

A technique in psychotherapy where individuals learn by observing and imitating the behaviors of others.

Reinforcement

The process of encouraging or establishing a pattern of behavior by offering reward or punishment.