A Consumer Has the Indifference Map Shown Below

question 14

Multiple Choice

A consumer has the indifference map shown below.The market prices of X and Y are $20 and $50,respectively.The consumer has $500 to spend on goods X and Y.The utility-maximizing bundle ________ (is,is not) a corner solution because __________________.

• A)is; the consumer spends all income on good X to buy 25 units of X.
• B)is; the consumer spends all income on good Y to buy 37.5 units of Y.
• C)is not; the consumer buys 5 units of X and 20 units of Y.
• D)is not; MRS equals the slope of the budget line.
• E)is not; MRS does not equal the slope of the budget line.

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Definitions:

Procedural Memories

Memories of how things are done, such as riding a bike or playing an instrument, that are often recalled unconsciously.

Implicit Memories

Memories that influence our behaviors and knowledge without conscious awareness, such as procedural memories.

Elaborative Rehearsal

A technique for remembering information by relating it to already known information and concepts, enhancing its memorability.

Phrase

A Phrase is a group of words that works together as a unit, lacking both a subject and predicate, and functions as a part of speech within a sentence.