It Follows from the Weak Axiom of Revealed Preference That

question 42

True/False

It follows from the weak axiom of revealed preference that if a consumer chooses x when he could afford y and chooses y when he could afford x, then his income must have changed between the two observations.

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Definitions:

International Trade

The exchange of goods and services across international borders or territories, influenced by comparative advantages, exchange rates, and international agreements.

Comparative Advantage

The ability of an individual or country to produce a good or service at a lower opportunity cost than another producer, supporting international trade.

Automobiles

Self-propelled vehicles designed primarily for passenger transportation.

Coffee

A beverage made from roasted and ground coffee beans, widely consumed globally and known for its stimulating effect due to caffeine.