Which of the following is not related to the theory of revealed preference?
Measurement of utility in cardinal numbers is not required by revealed preference theory. The theory infers preference from observed choices and uses consistency and…
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Which of the following is not related to the theory of revealed preference?
Answer and explanation
Correct answer A
Measurement of utility in cardinal numbers is not required by revealed preference theory. The theory infers preference from observed choices and uses consistency and transitivity restrictions rather than numerical measures of satisfaction.
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Kerala SET (LBS Centre)