Microeconomics Chapter 3-4 Preference Relations Quiz

<p>It only considers complete preferences (B)</p> Signup and view all the answers

<p>Perfect substitutes have utility functions that assign real numbers to bundles (B)</p> Signup and view all the answers

<p>Perfect complements are always consumed together in fixed proportions while perfect substitutes are consumed in varying proportions (A)</p> Signup and view all the answers

<p>Complete (D)</p> Signup and view all the answers

<p>The consumer is indifferent between the x and y bundles (B)</p> Signup and view all the answers

<p>X is at least as preferred as Y (B)</p> Signup and view all the answers

<p>Bundles equally preferred to a reference bundle (D)</p> Signup and view all the answers

<p>If X is weakly preferred to Y and Y is weakly preferred to Z, then X must be weakly preferred to Z (C)</p> Signup and view all the answers

<p>The consumer has no preference between the two bundles (B)</p> Signup and view all the answers

<p>They choose the best bundle of goods they can afford. (A)</p> Signup and view all the answers

<p>A bundle that consists of two types of goods. (D)</p> Signup and view all the answers

<p>Preferences depend on each consumer's needs and desires. (B)</p> Signup and view all the answers

<p>The relationship between different consumption bundles. (C)</p> Signup and view all the answers

<p>When x is more preferred than y in the x-bundle compared to the y-bundle. (B)</p> Signup and view all the answers

<p>The consumer derives the same level of utility from both bundles. (B)</p> Signup and view all the answers

Goods that are always consumed together in fixed proportions, like shoes and socks.

A mathematical function that assigns a real number to each bundle based on the quantity of goods consumed, representing the satisfaction or happiness a consumer gets from consuming them.

A utility function that only focuses on ranking different consumption bundles based on their preference, not the magnitude of satisfaction.

A mathematical representation of consumer preferences, indicating whether one bundle is considered better than, worse than, or equally preferred to another.

Goods that can be substituted for one another at a constant rate, with their utility functions assigning the same real number to bundles with the same total quantity of goods.

The assumption that any two consumption bundles can be compared, meaning the consumer can always express a preference between them.

Two bundles that a consumer considers equally preferable, providing the same level of satisfaction.

A bundle is weakly preferred over another if it is at least as preferred as the other bundle, meaning the consumer is either indifferent between them or prefers the first bundle.

A curve that connects all consumption bundles that a consumer considers equally preferred to a specific reference bundle.

The assumption that if bundle A is weakly preferred to bundle B, and bundle B is weakly preferred to bundle C, then bundle A must be weakly preferred to bundle C.

The process by which consumers make decisions about which bundle of goods to purchase based on their preferences and budget constraints.

A combination of two or more goods consumed by a consumer.

The relationships between different consumption bundles based on the consumer's needs, desires, and tastes.

One consumption bundle is strictly preferred over another if the consumer gets a higher level of satisfaction from consuming the first bundle compared to the second.

When a consumer derives the same level of utility from two different consumption bundles, meaning they are equally satisfied with either choice.