If John Consumes Only Two Goods,A and B,and He Is

question 51

Multiple Choice

If John consumes only two goods,A and B,and he is maximizing his utility subject to his budget constraint,

• A)MUA/MUB equals 1.
• B)MUA/MUB equals the ratio of the price of A to the price of B.
• C)MUA/MUB is at a maximum.
• D)MUA/MUB equals the ratio of the total utility of A to the total utility of B.
• E)MUA/MUB equals zero.

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Definitions:

Foreign Language

A language that is not the native language of the speaker, but that is used in the area where they are living or is commonly studied as a second language.

Memory Fade

The loss or weakening of memory over time, often due to the aging process or lack of mental stimulation.

Levels-Of-Processing Principle

A theory in cognitive psychology suggesting that the depth (shallow to deep) of mental processing affects memory recall, with deeper levels of processing leading to longer-lasting memory retention.

Retroactive Interference

The process by which new information impairs the retrieval of previously learned information.