Match List-I with List-II.
| List-I | List-II | ||
|---|---|---|---|
| (A) | Well-defined preferences | (I) | Chooses the most preferred bundle from the budget set |
| (B) | Rational consumer | (II) | The two bundles give equal utility |
| (C) | Monotonic preferences | (III) | Can compare any two bundles |
| (D) | Indifference between two bundles | (IV) | Prefers the bundle with more of at least one good and no less of the other |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) - (III), (B) - (I), (C) - (IV), (D) - (II)
These four terms describe how a consumer ranks bundles and chooses among them.
| List-I | List-II | Reason |
|---|---|---|
| (A) Well-defined preferences | (III) Can compare any two bundles | Between any two bundles she prefers one or is indifferent. |
| (B) Rational consumer | (I) Chooses the most preferred bundle from the budget set | She acts on her preferences to get the best for herself. |
| (C) Monotonic preferences | (IV) Prefers the bundle with more of at least one good and no less of the other | More is preferred to less. |
| (D) Indifference between two bundles | (II) The two bundles give equal utility | Equal utility leaves her with no preference. |
NCERT (2026-27): “2.3 Optimal Choice of the Consumer … It is generally assumed that the consumer has well defined preferences over the set of all possible bundles. She can compare any two bundles. In other words, between any two bundles, she either prefers one to the other or she is indifferent between the two. … From the bundles which are available to her, a rational consumer always chooses the one which gives her maximum satisfaction. …” “Monotonic Preferences … Thus, a consumer’s preferences are monotonic if and only if between any two bundles, the consumer prefers the bundle which has more of at least one of the goods and no less of the other good as compared to the other bundle.” “2.1.2 Ordinal Utility Analysis … The consumer is said to be indifferent on the different bundles because each point of the bundles give the consumer equal utility. …” |