As the Opportunity Cost of a Good Falls, the Substitution

question 129

Multiple Choice

As the opportunity cost of a good falls, the substitution effect implies that people buy

• A) less of that good and less of its substitutes.
• B) more of that good and more of its substitutes.
• C) more of that good and less of its substitutes.
• D) less of that good and more of its substitutes.

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Definitions:

Infant-Directed Speech

A special speech register used by adults when talking to babies, characterized by higher pitch, slower rate, and exaggerated intonation.

Experiments

Systematic procedures carried out to investigate phenomena, test hypotheses, or demonstrate known facts.

Environments

The surroundings or conditions in which an organism lives or operates, encompassing both natural and built settings, and social and cultural contexts.

Scheme

According to Piaget, an action pattern (such as a reflex) or mental structure that is involved in the acquisition or organization of knowledge.