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JAMB Economics 1988 Question 4

Question 4

Basic Concepts

Ufuoma is a consumer. His scale of preference shows that he prefers a pair of shoes to a wrist watch; he prefers the wrist watch to a pair of trousers; he prefers the pair of trousers to the pair of shoes. This means that Ufuoma is

  1. A.rational
  2. B.consistent
  3. C.inconsistent
  4. D.transitive.
Show the answer and explanation

Answer: C (inconsistent)

Explanation

If shoes beat the watch and the watch beats trousers, a consistent consumer must prefer shoes to trousers. Ufuoma prefers trousers to shoes, so his choices are inconsistent.