A rational student operating under a tight budget constraint needs to construct a scale of preference to allocate a limited monthly allowance of . Arrange the following competing items in descending order of priority (from top priority to lowest priority) according to the economic principles governing a scale of preference.
- 1Daily basic nutritional food expenses required for physical sustenance during the academic session
- 2Mandatory course textbooks required for passing upcoming continuous assessment examinations
- 3Subscription for a monthly high-speed internet data plan used for general research and communication
- 4Purchase of high-end designer apparel for an optional end-of-term campus party
Answer
The correct order from top priority to lowest priority is: 1. Daily basic nutritional food expenses required for physical sustenance during the academic session, 2. Mandatory course textbooks required for passing upcoming continuous assessment examinations, 3. Subscription for a monthly high-speed internet data plan used for general research and communication, 4. Purchase of high-end designer apparel for an optional end-of-term campus party.
A scale of preference is a list of unsatisfied wants arranged in order of relative importance and urgency. A rational consumer prioritizes essential survival needs (food) first, followed by critical functional needs (mandatory textbooks), secondary comforts (internet subscription), and lastly luxury or non-essential items (designer party apparel).
Step-by-Step Solution
Key Concept
Scale of Preference