The Argentine bundle is directly revealed preferred to the Bolivian bundle because Carlos consumes more of both goods (x and y) in Argentina (6, 7) compared to Bolivia (9, 2). Therefore, the correct option is: a. The Argentine bundle is directly revealed preferred to the Bolivian bundle.
Carlos's preferences are directly revealed in favor of the Argentine bundle over the Bolivian one, as he consumes more of both goods (x and y) in Argentina. However, there is no direct comparison between the Argentine and Colombian bundles.
The indirect comparison between the Argentine and Bolivian bundles is not discussed in the information provided. Thus, the correct option is (a) – the Argentine bundle is directly revealed preferred to the Bolivian bundle, based on Carlos's consumption patterns and the given price information. The preferences regarding the Colombian bundle are not directly revealed in the information provided.
The complete question is:
Carlos has at one time or another lived in Argentina, Bolivia, and Colombia. He buys only two goods, x and y. In Argentina the prices were ($9, $3) and he consumed the bundle (6, 7). In Bolivia he consumed (9, 2). In Colombia he consumed the bundle (6, 5) at the prices ($3, $3)
a. The Argentine bundle is directly revealed preferred to the Bolivian bundle.
b. The Argentine bundle is indirectly revealed preferred to the Bolivian bundle.
c. The Colombian bundle is directly revealed preferred to the Argentine bundle.
d. The Bolivian bundle is indirectly revealed preferred to the Argentine bundle.
e. None of the above.