Revealed Preferences Tells Us That If Basket a and Basket

question 38

Multiple Choice

Revealed preferences tells us that if basket A and basket B lie on the same budget constraint but the consumer chooses B instead of A , then we know that

• A) A is strictly preferred to B .
• B) A is preferred to B .
• C) B is strictly preferred to A .
• D) B is preferred to A .

---

Definitions:

Foreign Exchange Risk

The risk of losing money due to changes in exchange rates affecting transactions in foreign currencies.

Financial Statements

Documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Translating

The process of converting financial statements from one currency into another currency to provide comparability.