-Rick's Income Is $54 a Week and He Spends All

question 7

Multiple Choice

-Rick's income is $54 a week and he spends all of it on CDs and sandwiches. The price of a CD is $18 and the price of a sandwich is $3. The figure above illustrates Rick's preferences. What is Rick's best affordable combination of CDs and sandwiches?

• A) 2 CDs and 8 sandwiches a week
• B) 3 CDs a week and no sandwiches
• C) 1 CD and 12 sandwiches a week
• D) 3 CDs and 6 sandwiches a week

---

Definitions:

Extinction

Also a term from reinforcement theory, extinction refers to the situation in which a behavior is followed by no consequences and eventually disappears.

Underpayment Inequity

A situation where a person perceives that they receive less compensation than they deserve, compared to others in similar positions.

Reduce Inputs

A cost-saving and efficiency strategy which focuses on lowering the resources (such as materials, labor, and energy) used in the production process.

Security Needs

Basic human requirements for safety and security, including physical safety, employment, resources, health, and property.