What is a basket (or a bundle) of goods? 2. What does the assumption that preferences are complete mean about the consumer's ability to rank any two baskets? 3. Consider Figure 3.1. If the more is better assumption is satisfied, is it possible to say which of the seven baskets is least preferred by the consumer? 4. Give an example of preferences (i.e., a ranking of baskets) that do not satisfy the assumption that preferences are transitive. 5. What does the assumption that more is better imply about the marginal utility of a good? 6. What is the difference between an ordinal ranking and a cardinal ranking? 7. Suppose Debbie purchases only hamburgers. Assume that her marginal utility is always positive and diminishing. Draw a graph with total utility on the vertical axis and the number of hamburgers on the horizontal axis. Explain how you would determine marginal utility at any given point on your graph. 8. Why can't you plot the total utility and marginal utility curves on the same graph? 9. Adam consumes two goods: housing and food. a) Suppose we are given Adam's marginal utility of housing and his marginal utility of food at the basket he currently consumes. Can we determine his marginal rate of substitution of housing for food at that basket?