If preferences exhibit the property of transitivity, then
a. the preferences are irrational.
b. individuals prefer more government involvement in private markets than do people whose preferences are not transitive.
c. preferences change over time more quickly than when preferences are not transitive.
d. preferences satisfy one of the properties assumed to be desirable by Kenneth Arrow in Social Choice and Individual Values.
d
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Consumers benefit from monopolistic competition by
A) paying the same price as everyone else. B) being able to purchase high-quality products at low prices. C) paying the lowest possible price for the product. D) being able to choose from products more closely suited to their tastes.
Which of the following is most likely to lead to an increase of 1% in the nominal demand for money?
A) An increase in real income of 0.5% B) A decrease in real income of 0.5% C) A decline of 1% in the price level D) An increase of 1% in the price level