Midterm 2 Flashcards
1
Q
Completeness
A
Consumers can rank all bundles of goods.
2
Q
Transitivity
A
If a consumer prefers an over b and b over c, then they will always prefer an over c.
3
Q
Non-satiation
A
More is always preferred to less
4
Q
Diminishing marginal rate of substitution
A
When the marginal rate of substitution falls as we move down along an indifference curve.
