Pooh Spends All of His Income on Honey and Maple

question 135

True/False

Pooh spends all of his income on honey and maple syrup.Because he views honey and maple syrup as perfect substitutes,he is willing to substitute honey for maple syrup at the constant rate of 1 teaspoon of honey to 2 teaspoons of maple syrup.If the price of honey in terms of maple syrup is 2.2,Pooh's optimal consumption bundle will consist entirely of maple syrup.

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Definitions:

Observational Learning

A learning process through which behaviors are acquired by watching and imitating others.

Classical Conditioning

Form of learning in which a neutral stimulus becomes associated with a stimulus that naturally elicits a response, thereby making the neutral stimulus itself sufficient to elicit the same response.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Social-cognitive Learning

Learning through observing others’ behaviors, attitudes, and outcomes of those behaviors, emphasizing the importance of cognitive processes.