What is the intuition that an expansion of an individual's budget set represents a gain?
A)More options are preferred to less.
B)Money is the root of all happiness.
C)Information is power.
D)Scarcity is avoidable with prosperity.

Question

Quizplus · Accepted Answer

When an individual's budget set expands, they have more options available to them. According to the assumption of rationality, if more options are available, then the individual can choose the option that best satisfies their preferences. Therefore, an expansion of the budget set represents a gain because it increases the individual's ability to choose options that better satisfy their preferences.

What Is the Intuition That an Expansion of an Individual's