The Key to Reinforcement Theory Is That It Ignores Factors

question 127

True/False

The key to reinforcement theory is that it ignores factors such as goals, expectations, and needs and focuses solely on what happens to a person when he or she takes some action.

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Definitions:

Substitution Effect

The economic understanding that as prices rise or income decreases, consumers will replace more expensive items with less costly alternatives.

Budget Constraint

A financial limit that represents the combination of goods and services a consumer can purchase with their limited income.

Labor Supply Curve

A graphical representation showing the relationship between the quantity of labor willing to work and the wage rate.

Indifference Curves

A graphical representation used in economics to show different combinations of two goods that give a consumer equal satisfaction and utility.