You View Tea and Scones as Perfect Complements, and the Corners

question 18

Multiple Choice

You view tea and scones as perfect complements, and the corners of the indifference curves lie on the 45-degree line. Tea is plotted along the horizontal axis of the indifference map. Also, at your current point of consumption, you have not fully exhausted the available budget, and you consume more tea than scones. Based on this information, which of the following statements is NOT true?

• A) The marginal utility of tea equals zero for your current consumption bundle.
• B) The marginal utility of scones equals zero for your current consumption bundle.
• C) To reach the point of optimal consumption, you must increase your scone consumption.
• D) The equal marginal principle does not have to be satisfied at the optimal consumption point for this problem.

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Definitions:

Id

In Freudian psychoanalysis, the part of the mind which is the source of instinctual impulses and demands for immediate satisfaction of basic needs.

Metaphor

A figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable, to suggest a resemblance.

Superego

In psychoanalytic theory, the part of the personality that represents moral standards and ideals, acting as a conscience.

Moral Guardian

An individual or entity that promotes and enforces traditional ethical standards and values within a community or society.