The Assumption of Transitivity of Preferences States That _____

question 28

Multiple Choice

The assumption of transitivity of preferences states that _____.

• A)a consumer can rank all possible consumption bundles
• B)consumers act rationally when choosing between consumption bundles
• C)more of a good is always better
• D)no two bundles can yield the same level of utility

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Definitions:

Larger Groups

Describes collections of individuals that exceed the small, interpersonal dynamics of smaller groups, influencing social behavior differently.

Pluralistic Ignorance

A situation in which individuals rely on others to identify a norm but falsely interpret others’ beliefs and feelings, resulting in inaction.

Normative Social Influence

The influence that leads individuals to conform in order to be accepted and liked by their social group.

Informational Social Influence

A psychological phenomenon where individuals conform to the behavior of others under the belief that these others possess more accurate information, especially in ambiguous situations.