Which of the Following Best Illustrates the Place Theme

question 16

Multiple Choice

Which of the following best illustrates the place theme?

• A) Tropical rain forests have species of plants that are believed to have medicinal value.
• B) Tropical rain forests are located between the Tropic of Capricorn and the Tropic of Cancer.
• C) Tropical rain forests receive so much rainfall that the nutrients of the soil are washed away. Nutrients for plants come from the leaves of the larger trees not the soil.
• D) Not all of the plants and animals of the tropical rain forests have been discovered and named by scientists.

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Definitions:

Ordinary Goods

In a consumer’s utility function, those for which additional units of one good are required to compensate for fewer units of another, and vice versa; and for which the consumer experiences a diminishing marginal rate of substitution when substituting one good in place of another.

Marginal Rate

The rate at which one variable changes over the change in another variable, often used in the context of taxes or marginal rate of substitution in economics.

Substitution

The economic concept whereby consumers replace costlier items with less expensive alternatives, or firms switch between inputs to minimize costs.

Indifference Curves

A graph showing different bundles of goods between which a consumer is indifferent, representing equal levels of utility.