If a Good Is Offered to a Rational Individual for Free

question 85

Multiple Choice

If a good is offered to a rational individual for free, she will

• A)accept unlimited quantities of the good each time period
• B)stop consuming it when its marginal utility begins to increase
• C)stop consuming it when its marginal utility begins to diminish
• D)stop consuming it when its marginal utility equals zero
• E)stop consuming it when its total utility equals zero

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Definitions:

Physiological Psychology

A branch of psychology that studies the physiological bases of psychological processes.

Clinical Psychology

A branch of psychology that focuses on diagnosing and treating mental, emotional, and behavioral disorders.

Constructs

Theoretical concepts or variables that are devised to understand and explain psychological phenomena or behaviors.

Behavior

Actions or reactions of an individual in response to external or internal stimuli.