Nonsatiation implies that consumption bundles:
A)which are nearer the origin are preferred.
B)which contain more of all goods are preferred.
C)which contain fewer of all goods are preferred.
D)which contain more of one good and less of another are preferred.

Question

Quizplus · Accepted Answer

Nonsatiation means that more of a good is preferred to less. Therefore, consumption bundles that contain more of all goods are preferred. Option A is incorrect as bundles nearer to the origin are typically associated with less consumption. Option C is incorrect as it contradicts the concept of nonsatiation. Option D is incorrect as it implies that the individual has a preference for specific consumption bundles, rather than a general preference for more goods.

Nonsatiation Implies That Consumption Bundles