# Tag Info

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The true answer is of course it depends. What it depends on is how you define sustainability. In a natural resources context, with weak sustainability, soil quality is a capital asset, just as a fish stock, a forest or an oil field. Given that we have manure and fertilizer I would argue that it is a renewable resource (until we run out of phosphate perhaps ...

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Let $X$ be the number of possible baskets of goods that one can buy from a Walmart Superstore. Even if there were only 1,000 distinct items and we could only buy at most one of each item, that'd be $2^{1000}$ possible baskets. (Note that $X \gg 2^{1000}>10^{300}\gg10^{100}>$ "any estimate of the number of particles in the universe".) Even as a ...

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There is a problem in how you translate completeness into behavior. Let $R$ be any binary relation, representing preferences, on a set $X$ of alternatives and $A\subseteq X$ be a nonempty set of alternatives available. The usual assumption is that the decisionmaker chooses an alternative $a\in A$ optimally according to the relation $R$. Here are three ways ...

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I think that you should proceed by contradiction assume D is continuous, but $\succsim$ is not, then for a bundle either the more preferred than or the less preferred than sets are not closed. Choose the problematic set and choose a set B appropriately to get a contradiction of the existence of a maximum (remember that not closed sets might not admit a ...

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In microeconomics people are rational if they act to maximize their utility function. What goes into the utility function? Anything that is relevant when they choose, which is of course up to debate. Often economists are content to accept a first order approximation of what matters and should therefore be included in the utility function, namely monetary ...

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(Bottom in bold is a partial TL;DR) The definition your book gives you only seems incoherent because you take "people act to make themselves better off" (your book's definition) as the same as (or similar enough to) "fulfills their desire for happiness" (your characterization or additional characterization in the question you presented). Let's ignore the ...

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Indifference is different from incompleteness. A good example is indecisiveness. Eliaz and Ok have a nice discussion. Suppose you want to buy holidays for your family. You know your wife prefers Bahamas to Florida to Paris. Since you do not care particularly about the destination, you choose trying to represent their preferences. If Bahamas and Florida are ...

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