Question

Which axiom of rational choice does the statement 'People's choices must obey an ordering' reflect?

1) Axiom of Completeness
2) Axiom of Transitivity
3) Axiom of Continuity
4) Axiom of Independence

Answer 1

The statement 'People's choices must obey an ordering' reflects the Axiom of Completeness in rational choice theory.

Step-by-step explanation:

The statement 'People's choices must obey an ordering' reflects the Axiom of Completeness in rational choice theory.

The Axiom of Completeness states that for any two alternatives, a person must be able to compare and determine their preference.

For example, let's say Sarah is choosing between two movies, Movie A and Movie B. According to the Axiom of Completeness, Sarah should be able to rank or order her preference for Movie A and Movie B based on her personal preferences or criteria.