The assumption that preferences are complete requires the consumer
to rank any two baskets
to say that basket C is preferred to basket A if basket B is preferred to basket A and basket C is preferred to basket B
to rank a basket with more units of all goods higher than a basket with fewer units of all goods
to have a diminishing marginal rate of substitution
Irena likes Rajiv twice as much as she likes Royston. This is an example of
ordinal preferences
cardinal preferences
transitivity
diminishing marginal utility
Identify the truthfulness of the following statements. I. Ordinal utility gives us information about which basket the consumer prefers and quantitative information about the intensity of the preference. II. Cardinal utility gives us information about which basket the consumer prefers but not about the intensity of those preferences.
Both I and II are true
Both I and II are false
I is true; II is false
I is false; II is true
