We assume that the representative consumer's preferences exhibit the properties that
A) they evolve over time and that more is always preferred to less.
B) more is preferred to less and that the consumer prefers diversity.
C) the consumer likes diversity and that more is sometimes preferred to less.
D) more is sometimes preferred to less and that consumption and leisure are both normal goods.
E) less consumption is preferred to more leisure and that consumption and leisure are both normal goods.
Correct Answer:
Verified
Q6: We typically assume that
A) both consumption and
Q7: An indifference curve
A) connects a set of
Q8: A utility function
A) needs to measure the
Q9: A good is normal for a consumer
Q10: In macroeconomic analysis, the representative consumer
A) denotes
Q12: The preferences of the representative consumer over
Q13: A consumption bundle
A) is a particular combination
Q14: A consumer is said to be indifferent
Q15: Two key properties of indifference curves are
Q16: We assume that the representative consumer's preferences
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