In well functioning financial markets, and assuming rational behavior, why would a vegetarian prefer $100 worth of beef to $90 worth of vegetables?
- Vegetables will likely rise in value.
- The vegetarian could choose the beef, sell the beef, buy the vegetables, and make him or her self better off.
- The vegetarian thinks that beef is worth very little.
- Vegetables, by their very nature, are worth less than beef.
- $90 is worth more than $100 due to the economic principle known as diminishing marginal return.
- Beef will likely decline in value, while vegetables will not.
- $90 is worth more than $100 due to the economic principle known as diminishing marginal utility of wealth.
- All of the Above
- None of the Above